Winthrop Realty Trust Increases Commitment to Its 701 Seventh Avenue Times Square Venture -- Will Participate in Hotel Ownership
BOSTON, July 9, 2013 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR) announced today that it has agreed to increase its financial commitment to its venture that owns the property located at 701 Seventh Avenue, New York, New York, in the Times Square submarket of New York City, from up to $68.0 million to up to $120.0 million. The increased commitment reflects Winthrop's election to participate in the ownership of the hotel to be developed at the property and an increase in its preferred equity ownership from 45.85% to 61.1%. In connection with its increased commitment, Winthrop will contribute on July 23, 2013 an initial additional $4.9 million to the venture and has agreed to make a second payment of $4.7 million (assuming no further additional capital contributions) upon refinancing of the existing mortgage and mezzanine debt. Inclusive of the initial additional payment, Winthrop will have contributed $35.6 million to the venture and is entitled to a 12% preferred return on its contributed capital of which 8% is paid currently, and 4% is accrued.
Winthrop also announced that it recently:
- sold its Denton, Texas retail building for a gross sales price of $1.85 million and net proceeds, after costs and closing adjustments, of approximately $1.7 million. Winthrop's most recent reported net asset value range for this property was $1.725-$1.913 million.
- obtained a $5.1 million loan secured by its Churchill, Pennsylvania property, which loan bears interest at 3.5% per annum, requires monthly debt service payments of interest and principal based on varying amortization schedules and matures on August 1, 2024. After giving effect to the financing, it is expected that Winthrop will receive approximately $464,000 in annual cash flow to Winthrop's resulting net asset value range of $825,000-$2.567 million which reflects receipt of the loan proceeds.
About Winthrop Realty Trust
Winthrop Realty Trust, headquartered in Boston, Massachusetts, is a NYSE-listed real estate investment trust (REIT) focused on acquiring, owning, operating and investing in real property as well as real estate financial instruments including CMBS, bonds, REIT preferred and common stock. For more information, please visit our web-site at www.winthropreit.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively impact the matters herein described. These are detailed from time to time in the "Risk Factors" section of the Company's SEC reports. Further information relating to the Company's financial position, results of operations, and investor information is contained in the Company's annual and quarterly reports filed with the SEC and available for download at its website www.winthropreit.comor at the SEC website www.sec.gov.
CONTACT: At Winthrop Realty Trust Beverly Bergman Investor or Media Inquiries Phone: (617) 570-4614; e-mail: email@example.com