American Spectrum Realty Announces Completion Of Loan Refinance
American Spectrum Realty, Inc. (AMEX:AQQ) (“the Company”), a real estate
investment, management and leasing company headquartered in Houston,
Texas, announced today that it has completed a loan refinance on its
American Spectrum Realty, Inc. (AMEX:AQQ) (“the Company”), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today that it has completed a loan refinance on its self-storage facility in Houston, Texas (“A-Plus Self Storage”). The new loan for A-Plus Self Storage, in the amount of $2,030,000, is for a 10 year term and bears interest at a fixed rate of 5.55% per annum. The property’s annual net cash flow is anticipated to increase by approximately $75,000 as a result of the refinance. A-Plus Self Storage is a 76,250 square foot, 466 unit facility, located on Sabo Road and is managed by American Spectrum Realty Management, LLC (“ASRM”). The property operates under the 1st American Storage brand. When ASRM began managing and leasing the property in January of 2010, occupancy was severely low and the property value was less than the loan principal balance, with the loan maturing in August 2011. American Spectrum Realty Advisors, LLC (“ASRA”) negotiated a 12 month extension with the lender. Due to 1st American Storage’s cost-efficient branding, aggressive marketing strategies, and streamlined operations, A-Plus Self Storage was able to increase occupancy to 93 percent, increase gross revenue, decrease expenses and therefore, increase net operating income (NOI) by 72% or $105,000 per year. These efforts increased the appraised value of the property and allowed American Spectrum Realty Advisors, LLC to successfully negotiate a new loan with C-III Commercial Mortgage. The transaction closed on Thursday, June 21, 2012 and reduced the property’s interest rate by 187 basis points. 1st American Storage is a registered trademark of American Spectrum Realty, Inc. Through strategic partnerships and brand leveraging, ASRM is able to bring significant cost savings to third-party clients. 1st American Storage is a brand that represents value, integrity, and customer service within the industry. ASRA is a real estate consulting company that provides its clients with a turn-key approach to its investments, advising on all aspects of real estate, from loan workout solutions to exit strategies. ASRA's strategy is to provide creative solutions for its clients’ real estate to outperform the market and grow the value of their assets. ASRA is a wholly-owned subsidiary of the Company.