American Community Properties Trust (ACPT)

Transaction: $300 million acquisition of American Community Properties Trust (NYSE: APO) in a stock purchase totaling $43.6 million

Asset Summary: 3,350 apartments, 230,000 square feet of office space, and 4,500 acres fully entitled for over 11,000 residential units and 5 million square feet of commercial development

Location: St. Charles, a master planned community located in Charles County, MD, just 13 miles south of the DC Beltway. St. Charles is home to 18,000 residents.

Date Closed: December 2009

Investment Strategy:

• Rare opportunity to purchase a well-managed company with strong, stable cash flow and the Washington, DC area’s largest inventory of fully-entitled, reasonably-priced, well located home sites
• Privatized the company to decrease operating costs, improve cash flow and accelerate growth
• Simplified business model by disposing of non-core assets
• Providing growth capital to constrained business units 
• Enhancing revenue by improving marketing and creating brand awareness

Exit Strategy:

• Sale to REIT or core buyer