Presidential Realty Corp., a real estate investment trust based in White Plains, N.Y., has terminated its plan of liquidation and instead entered into a strategic transaction where affiliates of Signature Community Investment Group LLC acquired a significant interest in the company.
Signature's founder, owner and president Nickolas W. Jekogian III, will take on additional duties as the chairman and chief executive of Presidential. BBJ Family Irrevocable Trust, which Jekogian created and whose father is the sole trustee, purchased 40% of Presidential's class A common stock from Pdi Partnership for a purchase price of $1 per share.
Pdi had owned 51% of the class A stock; Jeffrey Joseph, Presidential's president and CEO had been one of the general partners.
Furthermore, two individuals associated with Jekogian will acquire 250,000 shares of class B common stock at $1 per share. These represent nearly 7% of the total class A and B shares outstanding.
Joseph will remain on Presidential's board but will resign as president and CEO. Alexander Ludwig, a consultant for Signature, will become president of Presidential.
Jekogian and Ludwig signed employment agreements which give them options to acquire 370,000 shares of Class B common stock at $1.25 per share.
