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) April 30, 1997
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 January 15, 1997, Banyan Strategic Realty Trust (the "Trust") acquired
a 100% ownership interest in an office/industrial complex known as Phoenix
Business Park. On April 30, 1997, the Trust acquired a 100% ownership interest
in an office building known as Butterfield Office Plaza. The terms regarding
the Trust's acquisition of these properties, the property description, and other
information are contained below.
PHOENIX BUSINESS PARK
The Phoenix Business Park property is located in northeast Atlanta,
Georgia and is a three-building office/industrial complex. The three buildings
contain approximately 110,600 square feet of gross leasable area, were
constructed in 1979 and are situated on approximately ten acres of land. The
Phoenix Business Park property was acquired for a purchase price of
approximately $5,479,000, including assumed liabilities at acquisition of
$33,000. The acquisition price was funded as a draw on the Trust's line of
credit with American National Bank and Trust Company of Chicago ("ANB").
The Phoenix Business Park property was 100% occupied with thirteen tenants
upon acquisition and remains fully occupied as of April 30, 1997. Three major
tenants occupy approximately 65% of the total gross leasable area of the
building. The General Services Administration, which operates an Internal
Revenue Service processing center, occupies 26,039 square feet of gross leasable
area pursuant to a lease which expires on January 14, 2001. Viacom, an
executive/sales office and television studio, occupies 20,773 square feet of
gross leaseable area pursuant to a lease which expires on January 31, 2006.
Bethco, Inc., a computer consulting firm, is located in two separate buildings
and occupies 25,788 square feet in the aggregate under a lease which expires on
January 31, 2000.
The Phoenix Business Park's day-to-day operations are managed by Metric
Realty Services, Inc. which receives a management fee each month equal to 4% of
rent collected at the property for these management services. The terms of the
management agreement is for one year, cancelable upon cause and renewable for
additional terms of one year at the Trust's option.
BUTTERFIELD OFFICE PLAZA
The Butterfield Office Plaza property (the "Butterfield Property") is
located in Oak Brook (metropolitan Chicago), Illinois and is a three-story
office building consisting of approximately 200,800 square feet of gross
leasable area. The property is situated on ten acres of land and was
constructed in 1974. The Butterfield Property was acquired for a purchase price
of $14,950,000, including liabilities assumed at acquisition of approximately
$698,000. The acquisition price was funded as a draw on the Trust's line of
credit with ANB.
The Butterfield Property was 92% occupied with fifty tenants upon
acquisition. There are ten tenants which occupy over 5,000 square feet of
office space each, representing approximately 48% of the total space of the
building.
The Butterfield Property's day-to-day operations are managed by Morgan
Realty Partners which will receive a management fee each month equal to 5% of
rent collected at the property for these management services. The term of the
management agreement is for one year, cancelable upon cause and renewable for
additional terms of one year at the Trust's option.
ITEM 7. STATEMENTS AND EXHIBITS.
The Trust 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 Trust's
independent accountants had not completed the audits of the 1996 operating
results of the properties on which the Trust bases its pro forma operating
estimates. The Trust currently anticipates completion of the audit and filing
of all required financial statements and pro forma financial information for the
properties within sixty days of the date of this report.
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: May 14, 1997 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
Vice President, Chief Financial and
Accounting Officer
