AMC Delancey Group Announces the Disposition of Towne House Suites & Apartments in Harrisburg, PA

Sale Culminates Successful Repositioning of Property

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. October 14, 2008

HARRISBURG, PA, JUNE 30, 2005. AMC Delancey Group, Inc., a Philadelphia-based national real estate investment company, has announced the disposition of the 320,000-square-foot, 20-story high-rise Towne House Suites & Apartments in Harrisburg, Pennsylvania to a private investor for an estimated $15.5 million. AMC Delancey purchased Towne House Suites & Apartments in 1996 from PHEAA and repositioned three floors of the property from an office building into an extended stay hotel. The balance of the building remained residential.

Leading the Towne House Suites & Apartments disposition were AMC Delancey's Brian K. Friedman, Vice President and General Counsel, and Andrew J. Kleeman, Vice President of Asset Management. Ann Bailey of CB Richard Ellis represented the buyer, Moses Mizrahi, who also owns The Executive House in Harrisburg.

"The sale of Towne House Suites and Apartments reflects what we do best at AMC Delancey," stated Kenneth P. Balin, President and CEO of AMC Delancey Group. "Upon acquisition, we converted the three floors of office space into an exclusive extended-stay hotel and, most recently, completely renovated the ground floor restaurant, which has proven to be a tremendous success. We are delighted with how quickly Towne House Suites & Apartments has become one of the premier residential properties in Harrisburg, featuring the largest hotel suites and apartments in the city. With market conditions favorable for divestiture and our ongoing strategy of pairing with operating partners in larger transactions, the disposition of this property fit right into our strategic plan. This was a great find for the buyer, who now has the opportunity to take advantage of the success we have achieved at the property."

Located on the north side of the Pennsylvania State Capitol Complex, Towne House Suites & Apartments is a mixed-use building, featuring 300 apartment units and 60 hotel suites, as well as a restaurant, barber & salon. The building has been the Harrisburg home of governors, public figures and prominent business leaders since 1961, including Lt. Governor Catherine Baker-Knoll.

Now focused more on partnering with strategic operating partners in larger investments along the East coast of the United States, AMC Delancey, along with Paramount Hotel Group, recently purchased and renovated a hotel in Jacksonville, Florida, and re-flagged it as the Radisson Hotel Jacksonville Butler Boulevard. The pair is currently renovating a hotel in Largo, Maryland that they purchased in March; and is also purchasing and renovating a third hotel property in the greater Orlando area. In addition, AMC Delancey has aligned with residential operating partner Hudson Capital for the development of 132 acres on the waterfront in St. Augustine, Florida.

"We have found much success in our operating partner strategy," Balin added. "We are continually looking for talented new operating partners in Pennsylvania, as well as elsewhere along the East Coast as we continue to expand and scale our business."