San Antonio III will continue to be operated under the 1st American Storage ® brand, which is a registered trademark of American Spectrum Realty, Inc. Through strategic partnerships and brand leveraging, 1 st American Storage ® is able to bring significant cost savings to third-party self-storage clients. 1st American Storage ® is a brand that represents value, integrity, and customer service within the industry.American Spectrum Realty, Inc. is a real estate investment company that owns interest in office, industrial, self-storage, retail, student-housing, and multi-family properties throughout the United States. The company has been publicly traded since 2001. American Spectrum Management Group, Inc. is a wholly-owned subsidiary of the Company that manages and leases all properties owned by American Spectrum Realty, Inc. as well as third-party clients. 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.
American Spectrum Realty, Inc. (NYSE MKT:AQQ), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today that it has successfully negotiated a new loan for the San Antonio III self-storage portfolio that was owned by 25 Tenant-In-Common investors (TICs). The individual ownership interests (comprised of 25 Tenant-In-Common investors) were converted into a newly formed limited liability company (LLC) per the new lender’s loan requirements. American Spectrum Realty, Inc. (“ASR”) became the managing member of the newly formed LLC. ASR and its financial partner contributed additional capital to the new LLC as preferred equity thus allowing for the new ownership to restructure and to refinance. ASR in conjunction with its financial partner also purchased the interests of two Tenant-In-Common (TIC) owners who preferred to “cash out” of their investment rather than stay in the newly formed LLC. ASR and its financial partner will continue to assist other TICs needing to refinance their real estate and/or sell their ownership interests. San Antonio III is a self-storage portfolio consisting of three properties: (1) AAA Stow Away a 634-unit facility located off I-10 W north of San Antonio and just south of Bourne, Texas, (2) Fair Oaks East a 342-unit facility located off I-10 W north of San Antonio and just south of Bourne, Texas (3) Attic Pantry a 132-unit facility located in Floresville, Texas, approximately 30 miles south of San Antonio. American Spectrum’s National Self-Storage Group assumed the management of the projects in January of 2010 and has since operated the projects under its Self-Storage brand, 1 st American Storage ®. 1st American Storage’s ® cost-efficient branding, aggressive marketing strategies, and streamlined operations resulted in significantly increased occupancy (from 77% to 92%), revenue growth and NOI. 1 st American Storage ® was also successful in leasing space to a United States Post Office branch at AAA Stow Away thereby increasing customer exposure to the facility while increasing revenue. These combined efforts increased the appraised value of the property significantly allowing American Spectrum to successfully negotiate a new loan at a reduced interest rate. The transaction closed on November 2, 2012. This refinance is a prime example of how American Spectrum provides creative solutions that outperform the market and grow the value of each asset under its management. Our vast experience and market insight provides a strategic, proactive, long term solution to investment challenges. American Spectrum offers a turn-key approach that is committed to maximizing financial performance.