OAK BROOK, Ill., May 2 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (Nasdaq: BSRTS) today announced that it has signed a contract to sell
its Tucker (Atlanta), Georgia property, known as Northlake Tower Festival
Mall, for a gross purchase price of $20.5 million. The purchaser, West Coast
Realty Investors, Inc., a Delaware corporation, has deposited $200,000 in
earnest money and is required to deposit an additional $200,000 at the end of
the inspection period (see below).
Northlake Tower Festival Mall is a 322,000 square foot power center on 38
acres located in suburban Atlanta. It is currently ninety-eight percent (98%)
leased to 49 tenants including Toys R-Us; Office Max; PetSmart; Haverty's; AMC
Theaters and Bally Total Fitness.
The purchase contract contains a forty-five (45) day inspection period and
is further contingent upon the purchaser obtaining the approval of General
Electric Capital Corp. ("GECC") to assume the existing first mortgage debt
that encumbers the property, which has an approximate principal balance of
$16.8 million. The purchaser is required to pay any and all assumption fees
charged by GECC. The purchaser may terminate the contract for any reason
during the inspection period without penalty.
The closing of the transaction is currently scheduled to occur on or
before July 17, 2002, unless an extension is required to complete the debt
assumption process. In the event GECC 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 at the contract price, the Trust expects to
realize net proceeds of approximately $3.35 million, or approximately $0.215
per share, after crediting the Purchaser the amount of the existing Northlake
debt (approximately $16.8 million) and paying related closing costs and
prorations (expected to be approximately $0.35 million).
The Trust reiterated 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 also noted that pursuit of the pending litigation between the Trust and
its suspended president Leonard G. Levine is now the primary focus of the
Trust's liquidation activity 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. Other properties were sold on April 1,
2002 and May 1, 2002. Banyan now owns a leasehold interest in one (1) real
estate property located in Atlanta, Georgia (the subject matter of this press
release), representing approximately 9% of its original portfolio. 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 property, 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, 2001 which was filed with the Securities and Exchange Commission
on March 21, 2002. 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
 back to top
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
|
