Winthrop Realty Trust FUR has
acquired the 50% interest that was held by its partner in the mezzanine loan
indirectly secured by the property located at One South State Street, Chicago,
Illinois. As a result, Winthrop now holds 100% of the mezzanine loan that has
an outstanding balance of principal and accrued interest of approximately
$56,150,000 and which bears interest at 15% per annum. Winthrop paid
$30,000,000 for the 50% interest. Both Winthrop and its partner, through a
joint venture, continue to each hold an approximately 35% indirect equity
interest in the property.
In addition, Winthrop recently entered into the following transactions:
* Through a joint venture, agreed to acquire Summit Pointe Apartments in
Oklahoma City, Oklahoma. The property is a 184-unit garden apartment
complex originally built in 1984. Upon closing of the acquisition of the
property, which is subject to the satisfaction of certain conditions,
Winthrop expects that its capital contribution to the venture will be
approximately $4,800,000. Pursuant to the terms of the venture agreement,
Winthrop will hold a preferred equity interest which entitles Winthrop to
an 8% preferred return from cash flow and, upon disposition of the
property, a preferred return sufficient to provide Winthrop with the
greater of a minimum 12% IRR as against an equity participation in the
property's appreciation. Assuming satisfaction of the closing conditions,
this transaction is expected to close in September 2013;
* Through its CDH CDO venture, has entered into an agreement to sell its One
Riverwalk property located in San Antonio, Texas. The closing of this
transaction is expected to occur at the end of the month, and, after
satisfying the existing third party debt, it is anticipated that Winthrop
will receive from the net proceeds approximately $4,400,000; and
* Sold its Seabrook, Texas property to an independent third party for gross
sale proceeds of $3,300,000, resulting in net proceeds of approximately
$3,202,000, an amount in excess of Winthrop's most recent net asset value
range for the property of $2,556,000 to $2,875,000.
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