JACKSONVILLE, Fla., July 15, 2011 /PRNewswire/ -- Patriot Transportation Holding, Inc. (NASDAQ: PATR) today announced its execution of a Letter of Intent with MidAtlantic Realty Partners, LLC. ("MRP") for the formation of a Joint Venture to develop the first phase of the four-phase Master Development known as RiverFront on the Anacostia in Washington, D.C. adjacent to the Washington Nationals baseball stadium. Under the terms of the Letter of Intent the parties have agreed to seek a modification from the District of Columbia authorities to the existing approved plan for the Master Development to change phase I from an office building to residential apartments for which market demand appears to exist today. The Letter of Intent contemplates the parties will enter into a formal joint venture agreement wherein Patriot Transportation Holding, Inc., through its wholly-owned subsidiary, Florida Rock Properties, Inc. ("FRP"), will, following approval for the change to residential apartments contribute the land comprising phase I to the joint venture in return for a seventy percent (70%) interest in the venture. MRP will contribute capital in the amount necessary for the venture to qualify for a nonrecourse loan for the balance of the estimated construction costs (this MRP contribution is currently estimated to be in the approximate amount of $4,500,000).
At this point the Letter of Intent contemplates commencement of construction in the spring of 2013 with lease up scheduled between September of 2014 and July of 2015. The Letter of Intent further contemplates additional incentive promotional returns to MRP but only after FRP and MRP have received a stipulated cumulative return on their contributed capital.
The Letter of Intent contemplates no commitments or obligations between the parties with respect to Phases II, III and IV of the Master Development Plan. The management of Patriot Transportation Holding, Inc. anticipates discussing this undertaking more fully in its third quarter earnings conference call currently planned to occur on August 3, 2011.
MRP Realty is a real estate operating company solely focused on the Washington DC metropolitan area. MRP provides a full array of real estate services including acquisition/disposition, construction and property/asset management. Since its inception in 2005, MRP has been involved with in excess of 5 million square feet of mixed use development projects totaling $1.5 billion.The Washington DC office of Jones Lang LaSalle has represented FRP in the search for a joint venture partner. Patriot Transportation Holding, Inc. anticipates issuing a press release on third quarter earnings on Wednesday, August 3, 2011. The Company will also host a conference call at 2:00 p.m. EDT on August 3, 2011. Analysts, stockholders and other interested parties may access the teleconference live by calling 1-888-207-9994 (pass code 98437) within the United States. International callers may dial 1-334-323-7225 (pass code 98437). Computer audio is available via the Internet through the Conference America, Inc. website at http://184.108.40.206/Conference_America or via the Company's website at http://www.patriottrans.com. If using the Company's website, click on the Investor Relations tab, then select the appropriate link for the current conference. An audio replay will be available for sixty days following the conference call. To listen to the audio replay, dial toll free 877-919-4059, international callers dial 334-323-7226. The passcode of the audio replay is 89660378. Replay options: "1" begins playback, "4" rewind 30 seconds, "5" pause, "6" fast forward 30 seconds, "0" instructions, and "9" exits recording. There may be a 30-40 minute delay until the archive is available following the conclusion of the conference call. Investors are cautioned that any statements in this press release which relate to the future are, by their nature, subject to risks and uncertainties that could cause actual results and events to differ materially from those indicated in such forward-looking statements. These include general economic conditions; competitive factors; political, economic, regulatory and climatic conditions; driver availability and cost; the impact of future regulations regarding the transportation industry; freight demand for petroleum product and levels of construction activity in the Company's markets; fuel costs; risk insurance markets; demand for flexible warehouse/office facilities; ability to obtain zoning and entitlements necessary for property development; interest rates; levels of mining activity; pricing; energy costs and technological changes. Additional information regarding these and other risk factors and uncertainties may be found in the Company's filings with the Securities and Exchange Commission. Patriot Transportation Holding, Inc. is engaged in the transportation and real estate businesses. The Company's transportation business is conducted through Florida Rock & Tank Lines, Inc. which is a Southeastern transportation company concentrating in the hauling by motor carrier of liquid and dry bulk commodities. The Company's real estate group, comprised of FRP Development Corp. and Florida Rock Properties, Inc., acquires, constructs, leases, operates and manages land and buildings to generate both current cash flows and long-term capital appreciation. The real estate group also owns real estate which is leased under mining royalty agreements or held for investment. SOURCE Patriot Transportation Holding, Inc.