OAK BROOK, Ill., Feb. 21 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (Nasdaq: BSRTS) today announced that it has signed a contract to sell
its Louisville, Kentucky property, known as 6901 Riverport Drive, for a gross
purchase price of $6.05 million. The purchaser is an entity to be formed by
Daniel Smith of Charlotte, North Carolina. Entities owned and/or controlled
by Mr. Smith previously managed properties owned by the Trust in Florida, and
jointly owned with the Trust the Woodcrest property in Tallahassee, Florida.
The Riverport property is a 322,000 square foot bulk warehouse facility
located in the Riverport Industrial area of suburban Louisville. It is
currently 55% leased by The Apparel Group, Ltd., whose lease expires in July
of 2004. The remaining 146,000 square feet are unoccupied.
The purchase contract contains a 60-day inspection period during which the
purchaser can conduct various tests and investigations of the property and the
surrounding market. During the inspection period the purchaser may terminate
the contract without penalty.
The contract is also subject to the ability of the purchaser to obtain,
within sixty days, suitable financing (as determined in the purchaser's sole
discretion) for the contemplated purchase. The purchaser has the right to
attempt to assume the existing industrial revenue bond financing or to seek
new financing. If the purchaser cannot obtain suitable financing within sixty
days, the purchaser can terminate the contract without penalty. Closing must
take place within sixty days of the end of the inspection period (i.e. on or
prior to June 21, 2002).
If the sale to Mr. Smith is consummated, the Trust expects to utilize the
proceeds to retire (or, in the event of an assumption, credit to the
purchaser) the existing Riverport debt, ($3.4 million) and to pay real estate
commissions, closing costs and prorations (approximately $0.5 million), thus
realizing net proceeds of approximately $2.15 million, or approximately
thirteen cents per share.
The Trust added that it intends to continue its policy of making
liquidating distributions to its shareholders when, and as often as,
conditions warrant, including as soon as practical after a closing.
In other news, the Trust announced that it has been notified by Nasdaq
that because the Trust's shares of beneficial interest have traded below the
minimum of $1.00 per share for the last thirty consecutive trading days, the
Trust now faces delisting if the bid price of the Trust's shares of beneficial
interest does not close at $1.00 or more per share for ten or more consecutive
trading days between now and May 15, 2002. The Trust's shares would be
delisted, subject to the Trust's right of appeal. The Trust is currently
looking into alternatives in order to provide a market for the exchange of its
shares.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that, on January 5, 2001, adopted a Plan of Termination and
Liquidation. On May 17, 2001, the Trust sold approximately 85% of its
portfolio in a single transaction and now owns interests in three (3) real
estate properties located in Atlanta, Georgia; Huntsville, Alabama; and
Louisville, Kentucky. As of this date, the Trust has 15,496,806 shares of
beneficial interest outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement of
which involve risks and uncertainties such as the sale of the Trust's
remaining properties, the amount of the remaining liquidating distributions,
the outcome of pending litigation and other risks and uncertainties that are
detailed from time to time in the Trust's reports filed with the Securities
and Exchange Commission, including the report on Form 10-K for the year ended
December 31, 2000 and in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section which was included in
the Trust's Form 10-Q for the quarter ended September 30, 2001, which was
filed with the Securities and Exchange Commission on November 14, 2001.
Without limitation, the foregoing words such as "anticipates", "expects",
"intends", "plans", and similar expressions are intended to identify forward-
looking statements.
See Banyan's Website at http://www.banyanreit.com .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, Vice President, General
Counsel, +1-630-218-7255, bhiggins@banyanreit.com , or Investor
Relations, L.G. Schafran - Chairman and Interim CEO, President,
+1-630-218-7250 , ir@banyanreit.com , both of Banyan Strategic
Realty Trust
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