EXHIBIT 99.2
------------
AT THE TRUST
Robert G. Higgins Investor Relations
Vice President, General Counsel L.G. Schafran - Chairman and
Interim CEO/President
312-683-5539 312 683-5525
[email protected] [email protected]
FOR IMMEDIATE RELEASE
JANUARY 19, 2001
BANYAN STRATEGIC REALTY TRUST ANNOUNCES
QUARTERLY DISTRIBUTION OF $.03 PER SHARE
CHICAGO - JANUARY 19, 2001 - Banyan Strategic Realty Trust (Nasdaq: BSRTS)
today declared a quarterly cash distribution of $.03 cents per share for
the fourth quarter ended December 31, 2000. The distribution is payable
February 28, 2001 to shareholders of record as of January 29, 2001.
The $.03 per share distribution reflects a $.09 decrease from the
$.12 distribution in each of the prior eleven quarters. The Trust had
distributed $.10 per share in each quarter from September, 1990, to
December, 1997. The decrease, according to the Trust, is directly
attributable to a $1.4 million cash outlay during the quarter for tenant
improvements necessitated primarily by the execution of major leases at the
Trust's Colonial Penn Building in Tampa, Florida and the Lexington Business
Center in Kentucky. Upon commencement of the lease terms, the occupancy at
the Colonial Penn Building will increase from 72 percent to 100 percent and
the occupancy of the Lexington Business Center will increase from 69
percent to 84 percent. The $1.4 million tenant improvement expense in the
fourth quarter equaled the Trust's tenant improvement costs for the prior
three quarters combined.
Banyan adopted a Plan of Liquidation on January 8, 2001 and
announced, on the same date, that it had entered into a definitive
agreement to sell all of its real estate assets to Denholtz Management
Corporation at a price of $226 million. The contract is subject to the
completion of due diligence scheduled for March 30, 2001. Because the
announced distribution follows the formal adoption of a Plan of
Liquidation, the distribution will be treated as a return of capital to
shareholders.
Commenting on the fourth quarter distribution and the Denholtz
transaction, the Trust's Interim President and CEO L.G. Schafran stated,
"The buyer's due diligence is well underway and we continue to anticipate a
late-April closing and a significant liquidating distribution soon
thereafter. Our ability to make the liquidating distribution depends,
however, upon the closing of the Denholtz transaction. In the meantime,
although less than in prior quarters, we are making this fourth quarter
distribution in recognition of our prior commitment to distribute to the
shareholders as much as is prudent at the end of each quarter. We will
continue to review our distributions on a quarterly basis."
Banyan Strategic Realty Trust is an equity Real Estate Investment
Trust (REIT) that owns primarily office and flex/industrial properties.
The properties are located in certain major metropolitan areas of the
Midwest and Southeastern United States, including Atlanta, Georgia and
Chicago, Illinois, and smaller markets such as Huntsville, Alabama;
Louisville, Kentucky; Memphis, Tennessee; and Orlando, Florida. The
Trust's current portfolio consists of 27 properties totaling 3.5 million
rentable square feet. As of this date the Trust has 14,282,640 shares of
beneficial interest outstanding.
<PAGE>
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement
of which involve risks and uncertainties such as the closing of the
Denholtz transaction and other risks and uncertainties that are detailed
from time to time in our reports filed with the Securities and Exchange
Commission, including the report on Form 10-K for the year ended
December 31, 1999 and in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section which was included
in our Form 10-Q for the quarter ended September 30, 2000 which was filed
with the Securities and Exchange Commission on November 14, 2000. Without
limitation the foregoing, words such as "anticipates", "expects",
"intends", "plans", and similar expressions are intended to identify
forward-looking statements.
See Banyan's Website at http://www.banyanreit.com.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter BSRTS.
-30-
