CHICAGO, Dec. 9/PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) today announced that is has entered into an agreement to sell
the Sarasota Commerce Center in Sarasota, Florida.
The Sarasota Commerce Center, a Class A office building, is under contract
to a private investor for a sales price of $13 million, or approximately
$160 per square foot. The Trust purchased the property in March, 1994 for
$10 million, or approximately $124 per square foot, excluding capital
expenditures. The transaction is expected to yield an internal rate of return
on the Trust's leveraged equity in the investment of approximately 19%. The
net cash proceeds to the Trust from the sale of Sarasota Commerce Center are
expected to be approximately $6.9 million.
Leonard G. Levine, President and CEO, commented, "We have been pleased
with the investment performance of the Sarasota Commerce Center, as this
transaction represents a profit of approximately 30% from our original
investment. The timing is right for this sale as we believe that the upside
potential of the income stream on this investment has been maximized. The
Board of Trustees will evaluate various alternatives for the use of the
$6.9 million in proceeds once the transaction is closed."
Any taxable gains generated by the sale of Sarasota Commerce Center are
expected to be offset by the Trust's net operating loss carry forward. The
sale is scheduled to close during the first quarter, 2000.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that owns and acquires primarily office and flex/industrial properties.
The properties are located in certain major metropolitan areas and smaller
markets of the Midwest and southeastern United States. The Trust's current
portfolio includes 31 properties totaling 3.5 million rentable square feet and
864 apartment units.
See Banyan's website at http://www.banyanreit.com
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter "BSRTS."
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Karen Dickelman, Investor Relations of
Banyan, 312-683-3671, or General, Tony Ebersole, 312-640-6727, or
Analysts, Georganne Palffy, 312-640-6768, all of the Financial
Relations Board for Banyan Strategic Realty Trust
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