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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) June 29, 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 June 29, 2004, Presidential Realty Corporation ("Presidential")
consummated the sale of its Continental Gardens property in Miami, Florida to
MAJO 208, LLC, a Florida limited liability company, for a sales price of
$21,500,000 pursuant to a contract for the sale executed in September, 2003. The
net cash proceeds of sale, after repayment of the $7,543,612 first mortgage loan
and prepayment penalty of $919,522, brokerage fees of $411,610 and other
expenses of sale of approximately $256,256, were approximately $12,369,000,
substantially all of which is being held in escrow to be used to purchase one or
more exchange properties pursuant to a tax-free exchange under Section 1031 of
the Internal Revenue Code. Presidential has not yet identified a suitable
property to acquire with the proceeds of sale and if it does not find a suitable
exchange property, the proceeds will be released from escrow and the sale will
result in taxable capital gain of approximately $15,300,000. The gain from sale
for financial reporting purposes is approximately $11,000,000.
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, net income from discontinued operations of
the property was $391,286. At December 31, 2003, assets related to discontinued
operations were $8,836,591 and liabilities related to discontinued operations
were $7,784,361.
ITEM 7. Financial Statements and Exhibits
(b) Pro forma financial information.
The pro forma financial information from the sale of the Continental
Gardens property is not required because the assets and liabilities and the
operations of the property were previously reported as discontinued operations
in the Company's Form 10-K filed for the year ended December 31, 2003, and the
Company's Form 10-QSB filed for the periods ended March 31, 2004 and March 31,
2003.
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: July 2, 2004 PRESIDENTIAL REALTY CORPORATION
By:/s/ Jeffrey F. Joseph
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Jeffrey F. Joseph
President