Search the web
Welcome, Guest
[Sign Out, My Account]
EDGAR_Online

Quotes & Info
Enter Symbol(s):
e.g. YHOO, ^DJI
Symbol Lookup | Financial Search
TSRE > SEC Filings for TSRE > Form 8-K on 27-Sep-2013All Recent SEC Filings

Show all filings for TRADE STREET RESIDENTIAL, INC.

Form 8-K for TRADE STREET RESIDENTIAL, INC.


27-Sep-2013

Entry into a Material Definitive Agreement, Completion of Acquisit


Item 1.01. Entry into a Material Definitive Agreement.

The information discussed under Item 2.01 of this Current Report on Form 8-K regarding the financing arrangement entered into in connection with the described acquisition is incorporated herein by reference.



Item 2.01. Completion of Acquisition or Disposition of Assets.

On September 24, 2013, Trade Street Residential, Inc. (the "Company"), through its operating partnership, Trade Street Operating Partnership, LP, completed the purchase of 100% of the membership interests of Fountains at Newbern Station, LLC, a North Carolina limited liability company (the "LLC"), which owns Fountains Southend, a recently constructed 208-unit apartment community located in Charlotte, North Carolina (the "Property"). The Property began leasing in June 2013 and was 96% occupied at closing. The acquisition was made pursuant to a purchase and sale agreement with unrelated third parties, Proffitt Dixon Partners, LLC, Newbern Station Holdings, LLC, the LLC, and the individual members of the LLC.

The Company funded the acquisition with a six month interim loan, dated September 23, 2013, from NXT Capital, LLC in the amount of $30.0 million. The loan bears interest at one-month LIBOR plus 4.75% with a floor of 5.75% and requires monthly payments of interest only. The loan matures on March 24, 2014 and requires the payment of a $150,000 fee payable at maturity. The Company has the option to extend the term of the loan for an additional three months subject to certain terms and conditions.

The loan documents contain customary terms and conditions, including, without limitation, customary events of default and acceleration upon default, including defaults in the payment of principal or interest, defaults in compliance with the covenants and bankruptcy or other insolvency events. The loan may be prepaid in whole, but not in part, during the first four months of the loan term, upon notice and payment of an exit fee equal to the sum of (a) $150,000 plus (b) the difference between $580,000 and the interest actually paid to the lender for a prepayment during the first four months of the loan term. The exit fee is $150,000 for a prepayment during month five of the loan term or thereafter.

The foregoing description of the terms of the loan documents does not purport to be complete and is qualified in its entirety by reference to the full text of the loan agreement and promissory note, which are filed as Exhibits 10.1 and 10.2, respectively, hereto and are incorporated herein by reference.



Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information discussed under Item 2.01 of this Current Report on Form 8-K regarding the financing arrangement entered into in connection with the described acquisition is incorporated herein by reference.

Item 9.01. Exhibits.

(a) Financial Statements of Business Acquired.

The financial statements that are required to be filed in connection with the acquisition of Fountains Southend, as discussed in Item 2.01 of this Current Report on Form 8-K, will be filed by amendment not later than 71 days after the date on which this initial 8-K is required to be filed.

(b) Pro Forma Financial Information.

The pro forma financial information that is required to be filed in connection with the acquisition of Fountains Southend, as discussed in Item 2.01 of this Current Report on Form 8-K, will be filed by amendment not later than 71 days after the date on which this initial 8-K is required to be filed.

(d) Exhibits.

Exhibit No.    Description
    10.1       Loan Agreement between TS New Bern, LLC and NXT Capital, LLC,
               dated September 23, 2013

    10.2       Promissory Note by TS New Bern, LLC to NXT Capital, LLC, dated
               September 23, 2013

  Add TSRE to Portfolio     Set Alert         Email to a Friend  
Get SEC Filings for Another Symbol: Symbol Lookup
Quotes & Info for TSRE - All Recent SEC Filings
Copyright © 2014 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service
SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.