Item 8.01 Other Events.

On December 30, 2008, Registrant's wholly-owned subsidiary, Avatar Properties Inc. ("Properties"), entered into separate transactions with two unrelated third parties providing for the formation of joint venture partnerships. Properties subsequently sold developed and partially-developed land within one of its Central Florida community developments to each of the newly formed partnerships. Properties acquired a minority ownership interest in each of the ventures and shares in the management of each of the ventures.

In addition, on December 31, 2008, Majestic Oaks Developers, LLLP, a Florida limited liability limited partnership in which Properties and an affiliated entity owned a 50% ownership interest, sold all of its real estate assets.

These transactions generated aggregate sales proceeds to Properties of approximately $11.4 million in assets with an aggregate book value of approximately $39.4 million. Sales proceeds consisted of approximately $7 million cash, of which Properties invested approximately $1.6 million for partnership interests in the joint ventures, and approximately $4.4 million in notes receivable. The pre-tax loss of approximately $28 million is anticipated to, but there can be no assurance that it will, result in a loss carryback against 2006 taxable income and generate an income tax refund of approximately $9.8 million.

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