LAKEWOOD, N.J., Aug. 19, 2019 /PRNewswire/ -- Reliance Global Group, Inc. (OTC: RELI) ("Reliance," "RELI" or the "Company"), today announced it has signed a Letter of Intent (LOI) to acquire a Class A multi-family property for a purchase price of $42.5 million. The property consists of approximately 260 apartment units. The first phase of construction, completed in 2017, is 97% occupied. The second phase of construction is expected to be completed in 2020, and all of the completed units have been pre-leased, subject only to total completion of construction.
The Company also announced that its affiliated privately-owned entity, Reliance Global Holdings, LLC, has transferred $250,000 to RELI, which is to be used as the initial down payment due upon execution of the purchase agreement.
Upon completion of the acquisition, RELI anticipates completing an SEC-compliant audit of this multi-family property, to enable it to become a significant component of the assets and business of RELI when it becomes a SEC-reporting issuer again.
Ezra Beyman, CEO of Reliance Global Group, stated, "We are excited to announce the planned acquisition of this premier property. This acquisition is consistent with our strategy of acquiring undervalued properties with sustainable cash flows in attractive markets. The property is ideally located in an area experiencing strong job growth. This is reinforced by the 97% occupancy rate in the first phase of the project, as well as the fact that the second phase is already 40% leased and over 100% pre leased upon completion of construction. We look forward to providing further updates as the project progresses."
About Reliance Global Group, Inc.
Reliance Global Group, Inc. (OTC PINK: RELI) is moving forward with its goal to operate as a holding company in the real estate and insurance brokerage sectors, and potentially other sectors. RELI's focus continues to be to grow the Company by pursuing an aggressive growth strategy of acquisition opportunities, including both real estate and insurance agencies. Insurance agencies, as opposed to insurance carriers, bear no insurance risk. The Company is controlled by Reliance Global Holdings, LLC, a New Jersey-based limited liability company, which is the owner and operator of numerous companies with core interests invested in real estate and insurance brokerage.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.