SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 5, 1995
BANYAN STRATEGIC REALTY TRUST
(Exact name of Registrant as specified in its charter)
Massachusetts 0-15465 36-3375345
(State of or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
150 South Wacker Drive, Suite 2900, Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 553-9800
This document consists of 5 pages.
Exhibit index is located on page 4.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On December 5, 1995, Banyan Strategic Realty Trust (the "Trust")
acquired a 100% fee simple ownership interest in the Newtown
Distribution Center and Lexington Business Center both located in
Lexington, Kentucky. The terms regarding the Trust's acquisition of
these properties, the property description, and other information are
contained below.
NEWTOWN DISTRIBUTION CENTER
The Newtown Distribution Center ("NDC") is located in north Lexington,
Kentucky on 6.6 acres of land. NDC was built in 1981 - 1982 and
consists of three office buildings and one warehouse/distribution
facility containing approximately 87,100 net rentable square feet in
total. The four buildings are constructed with a facade of exposed
concrete aggregate with a glass window line and have eighteen foot
clear roof heights and wet-sprinkler systems. NDC was acquired by the
Trust for a purchase price of approximately $3,585,000 which was based
upon consideration of a number of factors including recent appraisals,
market studies, and other internal valuations. The Trust utilized
approximately $595,000 of cash reserves for the acquisition of NDC
with the remaining balance of the acquisition price being provided for
by a draw of approximately $2,990,000 upon the Trust's line of credit
which was established with American National Bank of Chicago in late
1994. The line of credit is currently collateralized by the Trust's
interests in NDC, Colonial Penn Office Building, Colonial Courts
Apartments, Hallmark Village Apartments, Florida Power & Light
Building, Lexington Business Center and the Karfad Loan Portfolio.
Draws under the line of credit require monthly payment of interest
only until its maturity on December 14, 1996 and currently bears
interest a blend of thirty, ninety and one hundred and twenty-day
Libor rates plus 2.25% or approximately 8% to 8.5% per annum.
Management anticipates obtaining permanent long-term third party
financing within the next 12 months to repay amounts drawn under the
line of credit. NDC was acquired pursuant to a sales contract with
New England Mutual Life Insurance Company. NDC's day-to-day
operations are managed by Paragon Group Realty Services, Inc. Paragon
Group Realty Services, Inc. will receive a management fee each month
equal to 3% of rent collected at NDC for these management services.
The term of the management agreement is for one year, renewable at the
Trust's option.
The Registrant is currently unable to provide the financial statements
and pro forma financial information as part of this report as required
under Item 7 Financial Statements, Pro Forma Financial Information and
Exhibits (a)(b) of Form 8-K as of the date hereof. As of the date of
this filing the Registrant's independent accountant had not completed
the audit of the 1995 operating results of NDC on which the Registrant
bases its pro-forma operating estimates. The Registrant currently
anticipates completion of the audit and filing of all required
financial statements and proforma financial information for NDC within
sixty days.
LEXINGTON BUSINESS CENTER
The Lexington Business Center ("LBC") is located in southeastern
Lexington, Kentucky on 21.4 acres of land. LBC was built in 1985 and
consists of four office buildings and one distribution facility
containing in total approximately 316,200 net rentable square feet.
The four office buildings are constructed of concrete block and
finished with a brick facade and glass. The distribution facility is
constructed of concrete tilt-up slabs. The office buildings all have
a roof clear height of eighteen feet, while the distribution facility
has a clear height of twenty feet. LBC was acquired by the Trust for
a purchase price of approximately $7,065,000 which was based upon
consideration of a number of factors including recent appraisals,
market studies, and other internal valuations. The Trust utilized
approximately $1,155,000 of cash reserves for the acquisition of LBC
with the remaining balance of the acquisition price being provided for
by a draw of approximately $5,910,000 upon the Trust's line of which
was credit established with American National Bank of Chicago in late
1994. The line of credit is currently collateralized by the Trust's
interests in LBC, Colonial Penn Office Building, Colonial Courts
Apartments, Hallmark Village Apartments, Florida Power & Light
Building, Newtown Distribution Center and the Karfad Loan Portfolio.
Draws under the line of credit require monthly payment of interest
only until its maturity on December 14, 1996 and currently bears
interest at a blend of thirty, ninety and one hundred and twenty-day
Libor rates plus 2.25% or approximately 8% to 8.5% per annum.
Management anticipates obtaining permanent long-term third party
financing within the next 12 months to repay amounts drawn under the
line of credit. LBC was acquired pursuant to a sales contract with
New England Mutual Life Insurance Company. LBC's day-to-day
operations are managed by Paragon Group Realty Services, Inc. Paragon
Group Realty Services, Inc. will receive a management fee each month
equal to 3% of rent collected at LBC for these management services.
The term of the management agreement is for one-year, renewable at the
Trust's option.
The Registrant is currently unable to provide the financial statements
and pro forma financial information as part of this report as required
under Item 7 Financial Statements, Pro Forma Financial Information and
Exhibits (a)(b) of Form 8-K as of the date hereof. As of the date of
this filing the Registrant's independent accountant had not completed
the audit of the 1995 operating results of LBC on which the Registrant
bases its pro-forma operating estimates. The Registrant currently
anticipates completion of the audit and filing of all required
financial statements and proforma financial information for LBC within
sixty days.
Item 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS.
Financial Statements and Pro Forma Financial Information:
(i) Newtown Distribution Center (To be filed by amendment).
(ii) Lexington Business Center (To be filed by amendment).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: December 20, 1995 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
Joel L. Teglia
Vice President, Chief
Financial and Accounting
Officer
