EXHIBIT 99.1
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AT THE TRUST
Robert G. Higgins
Vice President, General Counsel Investor Relations
312-683-5539 312 683-3671
[email protected] [email protected]
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FOR IMMEDIATE RELEASE
January 8, 2001
BANYAN STRATEGIC REALTY TRUST AGREES TO SELL
ALL REAL ESTATE ASSETS TO DENHOLTZ MANAGEMENT CORPORATION;
ADOPTS PLAN OF LIQUIDATION
CHICAGO, IL JANUARY 8, 2001 -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) today announced that it has entered into a binding
contract with Denholtz Management Corporation. Denholtz Management
Corporation conducts business as Denholtz Associates. Under the terms of
the contract, Denholtz will acquire all of Banyan's real estate assets for
a price of $226 million. The contract includes a provision requiring
Denholtz to pay all prepayment penalties and assumption fees on Banyan's
real estate debt.
The contract contains standard conditions to closing including a due
diligence period during which Denholtz may terminate the contract for any
reason without penalty. The due diligence period ends March 30, 2001. The
Closing is scheduled for April 30, 2001, unless extended in accordance with
the contract.
Banyan also announced that it has adopted a Plan of Liquidation
pursuant to which Banyan will be dissolved and the proceeds from the sale
of its real estate assets distributed to the holders of Banyan's beneficial
interest. Banyan's board anticipates making the first of at least two
liquidating distributions shortly after closing the Denholtz transaction.
The final distribution is expected to occur prior to the end of 2001.
Banyan announced that based on the purchase price of the assets being sold
to Denholtz (assuming no adjustments) reduced by the costs of paying or
reserving for Banyan's liabilities and the costs of liquidating and
dissolving Banyan, it expects to make total distributions to the holders
equal to approximately $6.20 per share.
The contract results from a marketing effort initiated in August of
2000 by CFC Advisory Services Limited Partnership, an affiliate of Chicago
based Cohen Financial. Cohen was retained by Banyan to provide financial
advisory services and ultimately to market the Trust or its assets for
sale.
Denholtz Associates is a privately-held development, investment and
management company active in office, industrial, flex and retail real
estate in the United States. The company targets value-added real estate
whereby its substantial in-house resources and financial strength can
capitalize on opportunities that exist in the marketplace. Arthur Andersen
LLP is acting as financial advisor to Denholtz Associates.
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Banyan Strategic Realty Trust
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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 14,282,065 shares of
beneficial interest outstanding.
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 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.
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