OAK BROOK, Ill., March 4 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (Nasdaq: BSRTS) today announced that it has signed a contract to sell
its Huntsville, Alabama property, known as University Square Business Center,
for a gross purchase price of $8.45 million. The purchaser is USBC, LLC, an
Alabama limited liability company, whose principals include Alan C. Jenkins
and Joel L. Teglia. Mr. Jenkins is a principal in InterSouth Properties,
Inc., the current manager of the property, and Mr. Teglia is the executive
vice-president and chief financial officer of Banyan.
University Square is a six-building office complex containing 184,738
rentable square feet on 19 acres located in western Huntsville, Alabama. It
is currently ninety percent (90%) leased to 48 tenants.
The purchase contract contains no inspection period and is contingent only
upon the purchaser obtaining the approval of Wells Fargo Bank, N.A. to assume
the existing first mortgage debt that encumbers the property, which has an
approximate principal balance of $4.65 million. In the alternative, the
purchaser may elect to obtain conventional financing, in which event the
transaction is not contingent upon financing and the purchaser must pay the
Trust's prepayment penalty to Wells Fargo (approximately $900,000 - $950,000
depending upon prevailing interest rates at the time of payoff).
Closing is scheduled to occur on or before May 15, 2002, unless an
extension is required to complete the debt assumption process. In the event
Wells Fargo fails to approve the assumption, and the purchaser has not elected
to avail itself of alternative financing, the contract will be terminated
without penalty to the purchaser.
If the transaction closes, the Trust expects to utilize the proceeds to
retire (or in the event of an assumption, credit to the purchaser) the
existing University Square debt ($4.65 million) and to pay related closing
costs and prorations (approximately $0.15 million), thus realizing net
proceeds of approximately $3.65 million, or approximately $0.23 per share.
The Trust emphasized 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 is practical after a closing. The
Trust added that it now has two of its three remaining properties under
contract, and it continues to market for sale the Northlake Tower Festival
Mall in Atlanta, Georgia. The Trust also noted that pursuit of the pending
litigation between the Trust and its suspended president Leonard G. Levine
continues to be the primary focus of the Trust's litigation strategy going
forward.
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 (the
subject matter of this release); and Louisville, Kentucky (which is the
subject matter of the Trust's press release of February 21, 2002). 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, First 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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