Business & Finance
Business and Finance
Business and Finance 
Thu, May 13, 2010
BIRMINGHAM, AL--(Marketwire - May 13, 2010) - Four Star Holdings, Inc. (
The company has acquired two private entities, Ridgefield Development Corp., founded 2002 by Bobby Smith, Jr. and Fran Mize and Four Star Realty, founded in 2006 by Fran Mize and Bobby Smith, Jr. Both companies combined have an appraisal of a "Fair Market Value" of approx $10.5 million. Future acquisitions are intended to be rolled in as audits are completed that are quickly expected to exceed $70 million with a $35 million debt service. The Company has over 5,300 building sites in the region with an average of $176,500 per unit sales which is anticipated to be completed in the next 8-9 years. This forecasts the company to average roughly $104,000,000 in gross sales yearly over the next nine years.
The companies have built to date over 1,100 single family homes, over 30 commercial properties, numerous multifamily projects and one town home complex with a number of projects currently in various stages of construction. Over the past 18 months during the housing crisis, the Company has shown stability of the company's operation and holdings; they have seen 60% of their Home Building Competitors dwindle due to over leveraging and higher than normal carrying cost of inventory. This is due to the Company's conservative inventory levels giving it the ability to sell homes at a better than average sale price compared to its competitors.
The Company's building region ranks as one of the leading business centers in the Southeastern United States and is also one of the largest banking centers in the U.S. Money Magazine claims that despite a poor real estate market and the housing crisis certain markets are expected to show price gains in the following months and years. Birmingham is one of the cities and towns which have been virtually uninjured by the economy, seemingly immune to the foreclosures that have plagued the rest of the nation. Along with the National Builder Association indicators, Birmingham has dramatic rise in multifamily starts, staging the Company's region number 3 compared to the rest of the country.
Safe Harbor Disclosure-- This Press Release contains or incorporates by reference "Forward-looking statements," including certain information with respect to plans and strategies of Four Star Holdings, Inc. For this purpose, any statements regarding this announcement, which are not purely historical, are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including Four Star Holdings, Inc. beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and based on information available to Four Star Holdings, Inc. as of such date. There are a number of important factors that could cause actual events or actual results of Four Star Holdings, Inc. and its subsidiaries to differ materially from those indicated by such forward-lookingstatement.