SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 4, 2004
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Presidential Realty Corporation
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(Exact name of registrant as specified in charter)
DELAWARE 1-8594 13-1954619
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
180 South Broadway, White Plains, New York 10605
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (914) 948-1300
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No change since last Report
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(Former name or former address, if changed since
last report)
ITEM 2. Acquisition or Disposition of Assets
On May 4, 2004, Preston Lake Apartments, a 320 unit apartment property owned by
the Company in Norcross, Georgia, was sold by the holder of the first mortgage
on the property at a foreclosure sale. In February of 2004, the Company had
decided not to make the payment due on the nonrecourse note payable secured by
the first mortgage. The property had been performing poorly during the last
eighteen months and the Company had tried unsuccessfully to sell the property
for a price approximately equal to the $13,595,000 outstanding principal balance
of the mortgage.
In the year ended December 31, 2003, the property and the operations of the
property were classified as discontinued operations and assets and liabilities
of the property were classified separately on the balance sheet.
For the year ended December 31, 2003, the operations of the property had a net
loss of $857,346 and Presidential advanced approximately $801,000 to fund cash
deficiencies of the property. In addition, in 2003, the Company recorded an
impairment charge in the amount of $3,110,000 to reduce the carrying value of
the assets related to discontinued operations to their fair value less costs to
sell.
At December 31, 2003, assets related to discontinued operations were $13,321,948
and liabilities related to discontinued operations were $13,688,421.
The property was sold at the foreclosure sale for a price of $13,210,000. Since
Presidential's mortgage note payable was nonrecourse, Presidential is not
personally liable for repayment of the deficiency.
ITEM 7. Financial Statements and Exhibits
The financial statements required by Item 7 with respect to the disposition
described in Item 2 shall be filed by an Amendment to this Form 8-K no later
than sixty days after the date of this Form 8-K.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 17, 2004 PRESIDENTIAL REALTY CORPORATION
By:/s/ Jeffrey F. Joseph
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Jeffrey F. Joseph
President