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) March 1, 1999
--------------------
Presidential Realty Corporation
- ---------------------------------------------------------------------
(Exact name of registrant as specified in charter)
DELAWARE 1-8594 13-1954619
- ---------------------------- ------------ ------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification Number)
180 South Broadway, White Plains, New York 10605
- ------------------------------------------- ------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (914) 948-1300
--------------
No change since last Report
- -------------------------------------------------
(Former name or former address, if changed since
last report)
Item 5. Other Events.
-------------
On February 22, 1999, Presidential Realty Corporation consummated
the sale of its First and Second Mortgage Notes (excluding a $4,000,000 portion
of the Second Mortgage Note, which it retained) secured by unsold condominium
units at Fairfield Towers Apartments in Brooklyn, New York. The press release
dated February 26, 1999 attached as Exhibit 99 describes the transaction.
As stated in the press release, Presidential received approximately
$10,275,000 from the transaction, after repayment of its loan from Fleet Bank
and expenses related to the transaction. Out of this amount, Presidential
expects to pay approximately $1,700,000 of tax on the capital gain resulting
from the sale and to invest the balance of approximately $8,575,000 in rental
apartment properties. In addition, Presidential will receive interest on its
$4,000,000 retained note in the amount of $385,000 per annum for the first three
years and $420,000 per annum for the remaining seven years of the term of the
Note.
During the nine months ended September 30, 1998 and the year ended
December 31, 1997, Presidential reported income (net of deductions of interest
and amortization of loan acquisition costs on the Fleet note payable) of
$750,939 and $1,000,695, respectively, from the First and Second Mortgage Notes.
On a cash flow basis, Presidential received in the nine months ended September
30, 1998 and in the year ended December 31, 1997, $561,498 and $753,758,
respectively, from this investment, net of the Fleet expenses.
Item 7. Financial Statements, Pro Forma Financial Information and
---------------------------------------------------------
Exhibits.
---------
(c) Exhibits:
99. Press Release of Presidential Realty Corporation dated
February 26, 1999.
Page 2 of 6 pages
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: March 1, 1999 PRESIDENTIAL REALTY CORPORATION
By: Jeffrey F. Joseph
----------------------------
Jeffrey F. Joseph
President
Page 3 of 6 pages
INDEX OF EXHIBITS
-----------------
Exhibit 99 Press Release dated February 26, 1999 Page 5
Page 4 of 6 pages