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): December 6, 2002
KOGER EQUITY, INC.
(Exact name of registrant as specified in its charter)
FLORIDA
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(State or other jurisdiction of incorporation)
1-9997 59-2898045
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(Commission File Number) (IRS Employer Identification No.)
433 Plaza Real, Suite 335
Boca Raton, Florida 33432
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(Address of principal executive offices) (Zip Code)
(561) 395-9666
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(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
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Item 2. Acquisition or Disposition of Assets.
On December 6, 2002, Koger Equity, Inc. (the "Company") acquired The Lakes on
Post Oak (the "Property") in Houston, Texas for approximately $102 million. The
Property is comprised of three office buildings adjacent to the Galleria Mall,
which contain approximately 1.2 million square feet of rentable space. The funds
required for this acquisition were drawn from a $77 million mortgage secured by
the Property and from the Company's secured revolving credit facility. The
Property was acquired from 4849 Greenville I, Ltd. and West Oak/Nissei
Associates, unrelated third parties.
The Company considered various factors in determining the price to be paid for
this acquisition. Factors considered included the nature of the tenants and
terms of leases in place, opportunities for alternative and new tenancies,
historical and expected cash flows, occupancy rates, current operating costs on
the Property and anticipated changes therein under Company ownership, the
physical condition and location of the Property, the need for capital
improvements, the anticipated effect on the Company's financial results, and
other factors. The Company took into consideration capitalization rates at which
it believed other comparable properties had recently sold. However, the Company
determined the price it was willing to pay primarily on the factors discussed
above relating to the Property itself and its fit into the Company's existing
operations. No separate independent appraisal was obtained in connection with
this acquisition. The Company, after investigation, is not aware of any material
factors, other than those discussed above, that would cause the financial
information reported not to be necessarily indicative of future operating
results. The Company intends to lease office space in the Property to tenants as
it does the other office buildings contained in its portfolio. The Property will
be managed by a third party management company.
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Item 7. Financial Statements and Exhibits
Listed below are the financial statements, pro forma financial information and
exhibits, if any, filed as part of this report.
(a) Financial Statements of Real Estate Acquired.
The Company has engaged an independent accounting firm to audit
the Property's Statement of Revenues and Certain Expenses for the
year ended December 31, 2001. This Statement will be prepared in
accordance with Rule 3-14 of Regulation S-X of the Securities and
Exchange Commission. Upon the completion of the audit and within
75 days of the reportable event described above, the Company will
file the audited Statement as an amendment to this Form 8-K.
(b) Pro Forma Financial Statements.
The Company is currently developing unaudited pro forma financial
statements including (i) the Company's pro forma balance sheet as
of December 31, 2001, as if the acquisition occurred on December
31, 2001, (ii) the Company's pro forma statement of operations
for the year ended December 31, 2001, as if the acquisition
occurred on January 1, 2001, and (iii) a pro forma statement of
estimated taxable operating results and estimated cash to be made
available by operations of the Company for the year ended
December 31, 2001, as if the acquisition occurred on January 1,
2001. Within 75 days of the reportable event described above, the
Company will file the pro forma financial statements as an
amendment to this Form 8-K.
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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, thereunto duly authorized.
KOGER EQUITY, INC.
Dated: December 13, 2002 By: /s/ Thomas J. Crocker
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Thomas J. Crocker
Title: Chief Executive Officer
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