American Spectrum Realty, Inc. (NYSE AMEX:AQQ) (“The Company”), a real estate investment, management and leasing company headquartered in Houston, Texas is under contract to sell four (4) office buildings in Houston, Texas. The four buildings are contiguous and encompass approximately 11 acres of land. The sale is expected to be completed in the Company's 3rd quarter of 2012.
The Buyer is a large residential developer who is headquartered in Houston, Texas.
American Spectrum Realty also has a back-up offer from another large apartment developer for basically the same price, terms and conditions. Both buyers plan to demolish the buildings and develop the 11 acres into residential apartment projects in the near term.
The gross purchase price is approximately $26M with debt of approximately $18M. There is no assurance that either buyer will perform as there are several due diligence items to be completed by the buyer.
These sales will allow American Spectrum Realty to implement its long term strategic plan of selling certain assets to reduce our liabilities, increase our liquidity, and redirect capital to our core business. These sales will generate sufficient cash to pay down debt and reinvest the remaining capital. The Company makes no assurances that these sales will be concluded.
About American Spectrum Realty, Inc.
American Spectrum Realty, Inc. is a real estate investment company that owns, through its operating partnership, interest in office, industrial, self storage, retail properties, and apartments throughout the United States. The company has been publicly traded since 2001. American Spectrum Realty Management, LLC is a wholly-owned subsidiary of the Company’s operating partnership that manages and leases all properties owned by American Spectrum Realty, Inc. as well as third-party clients.
ASRM provides first-class management and leasing services for over 93 office, industrial, retail, self-storage, and multi-family properties, totaling over 11 million square feet in 18 states.