CHICAGO, Oct. 20 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) today announced that it has entered into agreements to sell
the Quantum Business Centre in Jefferson County, Kentucky and the Oklahoma
Apartment Portfolio in Oklahoma City and Lawton, Oklahoma.
The Quantum Business Centre, a multi-tenant office/warehouse property
located in Jefferson County (suburban Louisville), Kentucky, is under contract
to a private investor for a sales price of $6.1 million. The Trust purchased
the property in September, 1995 for $5.0 million, or approximately $28 per
square foot, excluding capital expenditures. The contracted sales price is
approximately $33 per square foot. The transaction is expected to yield an
internal rate of return on the Trust's leveraged equity in the investment of
approximately 15 percent. The net cash proceeds to the Trust from the sale of
Quantum Business Centre are expected to be approximately $3 million.
The Trust has entered into a contract to sell its Oklahoma Apartment
Portfolio to an institutional investor for approximately $24.1 million. The
portfolio, purchased by the Trust in May, 1997 for $21 million, consists of
four separate apartment complexes totaling 864 units. Each of the
properties is financed via a combination of fixed rate, tax-exempt and taxable
bonds, which will be assumed by the purchaser. This transaction is contingent
upon the bondholder's approval of the purchaser's assumption of these bonds.
The Trust's acquisition price equated to $24,200 per unit and the current
contracted sales price is $27,800 per unit. The internal rate of return on
the Trust's equity in the investment is expected to be in excess 40 percent
from this transaction. The net cash proceeds to the Trust from the sale of
the Oklahoma Apartment Portfolio are expected to be approximately $7 million.
Leonard G. Levine, President and CEO, commented, "The pending sales of
Quantum Business Centre and the Oklahoma Apartment Portfolio come at a strong
point in the investment cycles of both properties. We believe that we have
maximized the upside potential of the income stream on the Quantum investment.
The Oklahoma Apartment Portfolio sale moves us out of the multi-family sector
and allows us to focus on our core asset base, that being suburban office and
flex/industrial properties. The Board of Trustees expects to evaluate various
alternatives for the use of the $10 million in proceeds once the transactions
are closed."
Additionally, any taxable gains generated by the above transactions are
expected to be offset by the Trust's $19 million net operating loss carry
forward. Both sales are scheduled to close within the next sixty days.
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Karen Dickelman, Banyan Strategic Realty
Trust Investor Relations, 312-683-3671, or ir@banyanreit.com, or
General Information, Tony Ebersole, 312-640-6727, or Analyst
Information, Georganne Palffy, 312-640-6768, both of The
Financial Relations Board
NOTE TO EDITORS: For further information on Banyan Strategic
Realty Trust via facsimile at no cost, simply dial 1-800-PRO-INFO
and enter the company code BSRTS
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