UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)
Cornerstone Properties, Inc.
(Name of Issuer)
Common Stock, No Par Value
(Title of Class of Securities)
(CUSIP Number)
Robert F. Dow, 2800 One Atlantic Center, 1201 West Peachtree Street,
Atlanta, Georgia 30309-3450 (Name, Address and Telephone Number of
Person Authorized to Receive Notices and Communications)
11/7/96; 12/23/96
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box |_|.
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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Page 2 of 8
<TABLE>
<CAPTION>
=============================================================================================
1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above
<S> <C> <C> <C> <C> <C> <C>
Person
Hexalon Real Estate, Inc.
- ---------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)|_|
(b)|_|
- ---------------------------------------------------------------------------------------------
3 SEC Use Only
- ---------------------------------------------------------------------------------------------
4 Source of Funds
00
- ---------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(E) |_|
- ---------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
- ---------------------------------------------------------------------------------------------
7 Sole Voting Power
4,586,210*
- ---------------------------------------------------------------------------------------------
8 Shared Voting Power
0
- ---------------------------------------------------------------------------------------------
9 Sole Dispositive Power
4,586,210*
- ---------------------------------------------------------------------------------------------
10 Shared Dispositive Power
0
- ---------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
4,586,210*
- ---------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares |_|
- ---------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
18.2 percent
- ---------------------------------------------------------------------------------------------
14 Type of Reporting Person
CO
=============================================================================================
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT
* Includes shares of Common Stock issuable upon conversion of the shares
of 8% Cumulative Convertible Preferred Stock, Series A held by a
wholly-owned subsidiary of the reporting person.
<PAGE>
Page 3 of 8
<TABLE>
<CAPTION>
=============================================================================================
1 Name of Reporting Person S.S. or I.R.S. Identification No. of Above
<S> <C> <C> <C> <C> <C> <C>
Person
HRE Finance, Inc.
- ---------------------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)|_|
(b)|_|
- ---------------------------------------------------------------------------------------------
3 SEC Use Only
- ---------------------------------------------------------------------------------------------
4 Source of Funds
00
- ---------------------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(E) |_|
- ----------------------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
- ----------------------------------------------------------------------------------------------
7 Sole Voting Power
4,586,210*
- ----------------------------------------------------------------------------------------------
8 Shared Voting Power
0
- ----------------------------------------------------------------------------------------------
9 Sole Dispositive Power
4,586,210*
- ----------------------------------------------------------------------------------------------
10 Shared Dispositive Power
0
- ----------------------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
4,586,210*
- ----------------------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares |_|
- ----------------------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
18.2 percent
- ----------------------------------------------------------------------------------------------
14 Type of Reporting Person
CO
==============================================================================================
</TABLE>
SEE INSTRUCTIONS BEFORE FILLING OUT
* Includes shares of Common Stock issuable upon conversion of the shares
of 8% Cumulative Convertible Preferred Stock, Series A held by the
reporting person.
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Item 1. SECURITY AND ISSUER
This statement relates to the Common Stock, no par value, of
Cornerstone Properties, Inc., a Nevada corporation (the "Company"). The
principal executive office of the Company is located at:
126 East 56th Street New York, NY 10022
Item 2. IDENTITY AND BACKGROUND
1. (a) Hexalon Real Estate, Inc., a Delaware corporation
("HRE"), is a person filing this statement.
(b) 950 East Paces Ferry Road, Suite 2275, Atlanta,
Georgia 30326-1119.
(c) Real estate investment trust.
(d) None.
(e) None.
(f) United States.
2. (a) HRE Finance, Inc., a Delaware corporation
("HRE Finance") is a person filing this statement.
(b) 950 East Paces Ferry Road, Suite 2275, Atlanta,
Georgia 30326-1119.
(c) Real estate investment trust.
(d) None.
(e) None.
(f) United States.
Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
On November 7, 1996, HRE acquired 458,621 shares (the "Shares") of the
Company's 8% Cumulative Convertible Preferred Stock, Series A, in exchange for
HRE's common stock of Frick Building, Inc. a Delaware corporation ("Frick"),
which was merged with and into CStone-Pittsburgh Trust, a Maryland business
trust and wholly-owned subsidiary of the Company (the "Sub"), pursuant to the
terms of that certain Agreement and Plan of Merger ("Merger Agreement") dated
November 7, 1996, among the Company, the Sub, Frick, and HRE, a copy of which is
filed herewith as Exhibit 99.1.
On December 23, 1996, HRE transferred all of its interest in the
Shares to HRE Finance, its wholly-owned subsidiary.
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Item 4. PURPOSE OF TRANSACTION
The reporting person currently intends to hold the shares for
investment.
(a) None.
(b) See Item 3.
(c) None.
(d) Pursuant to the terms of that certain Stockholders
Agreement ("Stockholder Agreement") dated as of
November 7, 1996, among the Company and HRE, a
copy of which is filed herewith as Exhibit 99.2,
HRE may designate a director nominee, and the
Company shall recommend the election of such
nominee to the holders of the Company's common
stock. HRE has designated Cecil Conlee as its
director nominee. On November 27, Cecil Conlee was
elected as a director of the Company pursuant to
the Stockholder Agreement. On December 23, 1996,
the Stockholder Agreement was amended to add HRE
Finance as a party to the Stockholder Agreement.
(e)-(j) None.
Item 5. INTEREST IN SECURITIES OF THE ISSUER
(a)-(b) See Items 7-13 of the cover pages.
(c) See Item 3. No other transactions in the Company's
Preferred Stock have been effected by the persons
named in Item 2 above within the last sixty days.
(d) None.
(e) Not Applicable.
Item 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
See Item 4(d). The Stockholders Agreement includes, among other
things, (i) a restriction on the transfer of the Shares without prior written
notice to the Company; (ii) demand and piggyback registration rights for the
holders of the Shares; (iii) a requirement that the holders of the Shares
execute a lock-up agreement in the event of an underwritten public offering. The
Certificate of Designations of the Preferred Stock, a copy of which is filed
herewith as Exhibit 99.3, includes (i) a right by HRE to convert each Share into
ten shares of the Company's common stock, with such conversion ratio subject to
adjustment for dividends paid on the common stock, stock splits,
reclassifications, or the issuance of additional common shares or warrants and
(ii) a put right by HRE to cause the Company to redeem the Shares, at stated
value plus any accrued but unpaid dividends, at any time after January 1, 2001,
but only if the Company has not completed a public offering with net proceeds to
the Company of at least $75 million.
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Item 7. MATERIAL TO BE FILED AS EXHIBITS
99.1* Agreement and Plan of Merger dated November 7, 1996 99.2*
Stockholders Agreement dated November 7, 1996. 99.3* Certificate
of Designations, Voting Powers, Preferences and Relative,
Participating, Optional and Other Special Rights and
Qualifications, Limitations or Restrictions of 8% Cumulative
Convertible Preferred Stock, Series A of Cornerstone Properties,
Inc. 99.3 Agreement of filing persons relating to filing of joint
statement per Rule 13d-1(f).
*Previously filed.
<PAGE>
Page 7 of 8
Signature.
After reasonable inquiry each of the undersigned certifies that to the
best of his knowledge and belief the information set forth in this statement is
true, complete and correct.
HEXALON REAL ESTATE, INC.
By: William J. Breach
William J. Breach, its Vice President
HRE FINANCE, INC.
By: William J. Breach
William J. Breach, its Vice President
395078.1
Page 8 of 8
EXHIBIT 99.4
The undersigned each hereby certifies and agrees that the above
Schedule 13D concerning securities issued by Cornerstone Properties, Inc. is
being filed on behalf of each of the undersigned.
HEXALON REAL ESTATE, INC.
By: William J. Breach January 7, 1997
William J. Breach, its Vice President Date
HRE FINANCE, INC.
By: William J. Breach January 7, 1997
William J. Breach, its Vice President Date
