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| BRT > SEC Filings for BRT > Form 8-K on 10-Oct-2012 | All Recent SEC Filings |
10-Oct-2012
Entry into a Material Definitive Agreement, Completion of Acquisition or Disposi
On or about October 4, 2012, our wholly-owned subsidiary, TRB Silvana LLC ("TRB"), entered into a joint venture (the "Joint Venture") with KBS Silvana LLC ("KBS"). Contemporaneously therewith, the Joint Venture purchased Silvana Oaks Apartments, a 208 unit multi-family property located at 8439 Dorchester Road, North Charleston, SC, from Palmetto Park Apartments Associates, LLC. The Joint Venture paid approximately $22.6 million for the property (including the $21.5 million purchase price and $1.1 million representing, among other things, third party acquisition costs and insurance and real estate tax escrows), of which approximately $17.7 million was financed. We contributed $4.4 million to the Joint Venture in exchange for a 90% equity interest therein.
The $17.7 million loan bears interest at the rate of 3.79% per annum, is interest only until November 1, 2014, amortizes on a 30 year amortization schedule thereafter, matures on November 1, 2022, is secured by the acquired property, provides for customary events of default and is non-recourse to us and TRB.
The joint venture agreement generally provides that cash flow (as determined in accordance therewith) generated by the Joint Venture is to be distributed not less than quarterly in the following order of priority:
? to each member of the Joint Venture, pari passu, in proportion to their accrued and unpaid preferred return (i.e., an amount equal to 10% per annum, compounded quarterly on such member's unreturned capital contribution), until each member's preferred return has been paid in full;
? to each member of the Joint Venture, pari passu in proportion to their relative unreturned capital contributions, until such member's capital contributions has been returned in full;
? 25% to KBS and 75% to TRB until an internal rate of return of 15% has been achieved by TRB; and
? thereafter, 35% to KBS and 65% to TRB.
The information set forth in Item 1.01 is incorporated herein by this reference.
The information set forth in Item 1.01 is incorporated herein by this reference.
(a) Financial Statements of Business Acquired
The financial statements, if any, required by this item will be filed by December 18, 2012.
(b) Pro Forma Financial Information
The pro forma financial information, if any, required by this item will be filed by December 18, 2012.
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