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) August 14, 1998
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 3 pages.
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On August 14, 1998, the Trust acquired from an unaffiliated third
party a 100% fee simple interest in two office/industrial park properties
located in the suburbs of Atlanta, Georgia, for a purchase price of
approximately $18.1 million. The properties were purchased utilizing
proceeds from the Trust's secured line of credit in the amount of
approximately $10.6 million, proceeds from an unsecured credit facility in
the amount of approximately $7.4 million, and the remainder was paid from
the operating cash reserves.
TECHNOLOGY PARK
Technology Park, located in Norcross, Georgia, consists of three
office buildings containing approximately 145,700 square feet. The
property was 100% occupied with twelve tenants at the time of the
acquisition. The major tenants at the property are: General Electric
Plastics; Foster Wheeler; Andritz, Kone Wood, Inc.; Gulliver Ritchie
Associates, Inc. and Frame Technology Corp.
JOHNS CREEK OFFICE AND INDUSTRIAL PARK
Johns Creek property consists of two flex/industrial buildings
located in Duluth and Suwanee, Georgia. The property contains
approximately 119,300 square feet and was 100% occupied with two tenants at
the time of the acquisition. The two tenants are Scientific & Business
Microcomputer and Williams Die & Mold.
The day-to-day operations of the properties are managed by a local
management company, which will receive a management fee each month equal to
3.4% of gross collections for the office properties and 3% of gross
collections for the flex/industrial properties, for these management
services. The term of the management agreement is for one year, cancelable
upon 30 days written notice. If not terminated, the agreement will
automatically renew for additional periods of one year each.
ITEM 5. OTHER INFORMATION
On August 19, 1998, the Trust issued a Press Release, a copy of which
is attached hereto as Exhibit (99.17) and is incorporated herein by
reference.
On August 28, 1998, the Trust issued a Press Release, a copy of which
is attached hereto as Exhibit (99.18) and is incorporated herein by
reference.
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
1997 and 1998 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.
(c) Exhibits
EXHIBIT NUMBER DESCRIPTION
Exhibit (99.17) Press Release dated August 19, 1998
Exhibit (99.18) Press Release dated August 28, 1998
<PAGE>
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: August 31, 1998 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
Vice President,
Chief Financial and
Accounting Officer
EXHIBIT 99.17
- -------------
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Karen Dickelman Tony Ebersole Laura Kuhlmann Claire Koeneman
Director/Investor General Media Inquiries Analyst Inquiries
Relations Inquiries 312 640-6727 312 640-6784
312 683-3671 312 640-6728
FOR IMMEDIATE RELEASE
WEDNESDAY AUGUST 19, 1998
BANYAN STRATEGIC REALTY TRUST ANNOUNCES $18.1 MILLION PURCHASE OF TWO
OFFICE/INDUSTRIAL PROPERTIES IN METROPOLITAN ATLANTA, GEORGIA;
INCREASES HOLDINGS IN ATLANTA AREA TO APPROXIMATELY 900,000 NET
RENTABLE SQUARE FEET
Purchase Increases Total Portfolio Assets by 9%
CHICAGO, AUGUST 19, 1998 - Banyan Strategic Realty Trust (Nasdaq:BSRTS)
today announced the acquisition of two office/industrial park properties
located in the northeastern suburbs of Atlanta, Georgia for a purchase
price of approximately $18.1 million, including closing costs and other
related expenses. These acquisitions increase the Trust's total portfolio
assets by 9% for an additional 265,000 net rentable square feet. This
transaction also increases the Trust's presence in the Atlanta market to
approximately 900,000 net rentable square feet. The acquisition price
equates to a capitalization rate of 11% on net operating income for the
full year 1999.
The Trust's total acquisitions so far this year approximate $60 million or
833,000 net rentable square feet. Currently, the Trust's property
portfolio includes 32 properties totaling 3.7 million net rentable square
feet and 864 apartment units having acquisition values of approximately
$209 million.
The properties, known as TECHNOLOGY PARK and JOHNS CREEK AND INDUSTRIAL
PARK are located in Norcross, Duluth and Suwanee, Georgia, all northeast
suburbs of Atlanta and part of an area known as Peachtree Corners - a
favored location for high technology companies.
- MORE -
<PAGE>
In total, the properties contain five separate buildings and represent both
the office and office/distribution sectors. Current occupancy at each
property is 100%. A further breakdown of individual property data is as
follows:
TECHNOLOGY PARK
- ---------------
Approximately $12.4 million of the $18.1 acquisition price ($84.82 per
square foot) is attributable to Technology Park. The property includes
three office buildings:
. 205 Scientific Drive Norcross, Georgia 21,380 net rentable
square feet
. 302 Research Drive Norcross, Georgia 58,157 net rentable
square feet
. 303 Research Drive Norcross, Georgia 66,132 net rentable
square feet
JOHNS CREEK OFFICE AND INDUSTRIAL PARK
- --------------------------------------
Approximately $5.7 million of the $18.1 acquisition price ($47.93 per
square foot) is attributable to Johns Creek Office and Industrial Park.
The property includes two office/distribution facilities:
. 11455 Lakefield Drive Duluth, Georgia 59,343 net rentable
square feet
. 3851 Lakefield Drive Suwanee, Georgia 60,000 net rentable
square feet
This transaction was funded via proceeds borrowed pursuant to the Trust's
secured line of credit and unsecured credit facility.
"The addition of these new properties brings us more than half-way to our
targeted $100 million acquisition goal for the year," stated Leonard G.
Levine, President of the Trust.
Banyan Strategic Realty Trust is an equity Real Estate Investment (REIT)
with a portfolio that includes primarily flex/industrial and suburban
office buildings, as well as retail and residential properties. The
properties are located in major metropolitan areas and mid-to-small second
tier markets primarily in the Midwest and Southeast United States. The
Trust currently has 13,316,059 shares of beneficial interest outstanding.
- MORE -
<PAGE>
Some of the statements contained in the foregoing are forward-looking
statements. Words such as "believes," "intends," "anticipates," "expects,"
and similar expressions are intended to identify forward-looking statements
which are subject to a number of risks and uncertainties, including, among
other things, general real estate investment risks, lack of operating
history associated with recent acquisitions, potential inability to repay
or finance indebtedness at maturity, increases in interest rates,
competition for property acquisitions, adverse consequences of failure to
qualify as a REIT, and possible environmental liabilities. Actual results
could differ materially from those projected in these forward-looking
statements. Reference is made to the annual report on Form 10-K filed by
the Trust, specifically under the heading "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Factors
Affecting the Trust's Business Plan" for a more complete discussion of
these risk factors. The Trust undertakes no obligation to publicly release
the result of any revisions to these forward-looking statements that may be
made to reflect any future events or circumstances.
See Banyan's Website at http://www.banyanreit.com for complete company
information.
FOR FURTHER INFORMATION REGARDING BANYAN FREE OF CHARGE VIA FAX,
DIAL 1-800-PRO-INFO AND ENTER "BSRTS."
EXHIBIT 99.18
- -------------
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Karen Dickelman Tony Ebersole Laura Kuhlmann Georganne Palffy
Director/Investor General Info. Media Inquiries Analyst Inquiries
Relations 312 640-6728 312 640-6727 312 640-6768
312 683-3671
FOR IMMEDIATE RELEASE
FRIDAY AUGUST 28, 1998
BANYAN STRATEGIC REALTY TRUST'S BOARD OF TRUSTEES RE-ELECTS
LEONARD G. LEVINE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER
AND APPOINTS HIM TO BOARD SEAT; THE TRUST'S OTHER OFFICERS RE-ELECTED
CHICAGO, AUGUST 28, 1998 - The Board of Trustees of Banyan Strategic Realty
Trust (Nasdaq:BSRTS) announced today that they have re-elected Leonard G.
Levine as President and Chief Executive Officer of the Trust, and have
appointed Mr. Levine to a seat on the Board in recognition of his
achievements and leadership in directing the Trust.
Among other issues, the Trustees also unanimously approved the re-election
of the following officers:
Neil D. Hansen - First Vice President
Robert G. Higgins - Vice President, Secretary and
General Counsel
Joel L. Teglia - Vice President and Chief
Financial Officer
Jay E. Schmidt - Vice President - Investment
Christopher J. Swieca - Assistant Secretary
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) with a portfolio that includes primarily flex /industrial and
suburban office buildings, as well as retail and residential properties.
The properties are located in major metropolitan areas and mid-to-small
second tier markets primarily in the Midwest and Southeast United States.
The Trust currently has 13,348,076 shares of beneficial interest
outstanding.
See Banyan's website at http://banyanreit.com
for complete company information.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter "BSRTS".
