Avatar Announces Closing of Over-Allotment Option

October 6, 2009 11:48 AM EDT

CORAL GABLES, Fla., Oct. 6 /PRNewswire-FirstCall/ -- Avatar Holdings Inc. (Nasdaq: AVTR) announced today the closing of the sale of an additional 264,391 shares of its common stock at a public offering price of $18.00 per share pursuant to the underwriter's partial exercise of its option to purchase additional shares of common stock. The option was granted in connection with the Company's underwritten public offering of 2,250,000 shares of common stock at a price of $18.00 per share, which closed on September 28, 2009. The partial exercise of the option resulted in net proceeds of $4.5 million, bringing the total net proceeds of the offering to approximately $42.2 million. The Company intends to use the net proceeds from the offering for general corporate purposes, including, without limitation, potential new acquisitions of real estate and real estate-related assets.

The offering was made through Barclays Capital Inc., as sole underwriter.

This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the common stock. A registration statement relating to the common stock was declared effective by the Securities and Exchange Commission on August 28, 2009, and this offering was made by means of a prospectus supplement. Copies of the prospectus supplement and accompanying prospectus relating to the offering may be obtained from the offices of Barclays Capital Inc. at the following address:

        Barclays Capital Inc.
        c/o Broadridge
        Integrated Distribution Services
        1155 Long Island Avenue
        Edgewood, New York  11717
        E-mail:  Barclaysprospectus@broadridge.com

Or by calling toll-free at: 1-888-603-5847

An electronic copy of the prospectus supplement and the accompanying prospectus will also be available on the website of the Securities and Exchange Commission at http://www.sec.gov.

Avatar Holdings Inc. is primarily engaged in real estate operations in Florida and Arizona. Its principal real estate operations are conducted at Poinciana, Solivita and Bellalago in central Florida near Orlando, Terra Largo in Lakeland, Florida and at Rio Rico, south of Tucson, AZ. Avatar's common shares trade on The Nasdaq Stock Market under the symbol AVTR.

Certain statements discussed herein or made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and other important factors include, among others: the continuing decline in value and the instability of certain financial markets; disruption of the credit markets and reduced availability and more stringent financing requirements for commercial and residential mortgages of all types; the number of investor and speculator resale homes for sale and homes in foreclosure in our communities and in the geographic areas in which we develop and sell homes; the increasing level of unemployment; the decline in net worth and/or of income of potential buyers; the decline in consumer confidence; the failure to successfully implement our business strategy; shifts in demographic trends affecting demand for active adult and primary housing; the level of immigration and migration into the areas in which we conduct real estate activities; our access to financing; geopolitical risks; construction defect and home warranty claims; changes in, or the failure or inability to comply with, government regulations; and other factors more fully described under the caption "Risk Factors" in the prospectus supplement and the accompanying prospectus and the documents incorporated by reference in the prospectus supplement and the accompanying prospectus.

SOURCE Avatar Holdings Inc.

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