American Spectrum Realty, Inc. (NYSE/MKT: AQQ) – a real estate investment, management and leasing company – today announced that it would record a $2 million gain in the first quarter of 2014 on a real estate sale in Houston, TX.
American Spectrum acquired the distressed shopping center, Windrose Center Place, in 2007 when it was purchased at a discount to the cost of construction from the original lender. The Company spent approximately one year to complete the construction. There were no leasing agreements in place at the time of acquisition.
The Company originally acquired the property for approximately $3.8 million and sold it for $5.75 million. The Company also eliminated approximately $4.05 million in secured debt as well as $780,000 in other American Spectrum liabilities. The 28,715 square foot retail center was aggressively leased up from zero to 100% occupied when sold by American Spectrum. The property tenant base is 75% medical related with long-term leases.
“These results are based on dynamic marketing and creative leasing strategies that our team used to produce significantly increased value,” according to William J. Carden.
American Spectrum’s sale of this asset is consistent with its long-term strategy of selling certain assets to reduce liabilities, increase liquidity and redirect its focus on more profitable endeavors. The Company intends to continue the diversification of its assets through acquisition and disposition of real estate.
ABOUT AMERICAN SPECTRUM REALTY, INC.
American Spectrum Realty, Inc. is a real estate investment company that owns, through an operating partnership, interests in office, industrial, retail, self-storage, RV parks, retail, multi-family properties and undeveloped land throughout the United States. American Spectrum Management Group, Inc., a wholly-owned subsidiary of the Company, manages and leases all properties owned by American Spectrum Realty, Inc. as well as for third-party clients totaling 10 million square feet in multiple states. Website:
FORWARD LOOKING STATEMENTS
Certain matters discussed in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Company's past and current filings with the U.S. Securities and Exchange Commission.