American Spectrum Realty Acquires $84.8M Portfolio
American Spectrum Realty, Inc. (NYSE MKT: AQQ) – a real estate
investment, management and leasing company – today announced the
acquisition of a diverse real estate portfolio valued at an estimated
American Spectrum Realty, Inc. (NYSE MKT: AQQ) – a real estate investment, management and leasing company – today announced the acquisition of a diverse real estate portfolio valued at an estimated gross value of $84.8 million, which included the assumption of $17.2 million of debt, from three limited partnerships managed by Asset Managers, Inc. of San Diego, CA.: D&A Daily Mortgage Fund III, L.P., D&A Semi-Annual Mortgage Fund III, L.P. and D&A Intermediate-Term Mortgage Fund III, L.P. The newly-acquired 19 real properties consist of commercial/retail properties, multi-family and single family residences, RV parks and land and are owned by American Spectrum Dunham Properties LLC, a wholly-owned subsidiary of American Spectrum Realty, Inc. The properties were acquired in exchange for preferred stock of American Spectrum Realty, Inc. “This acquisition enlarges our portfolio of owned and managed properties in California and Nevada,” according to William J. Carden, CEO of American Spectrum Realty, Inc. “We plan to apply our national resources to these properties with intense asset management, introduction to our web-based marketing resources and the talents of our sales/leasing network to allow the properties to perform at their highest levels,” Carden pointed out. American Spectrum Realty, Inc. is issuing to the selling entities new shares of 8% Cumulative Preferred Stock, Series “B” in exchange for the contribution of the properties in an amount based on the net contribution value of the contributed properties. The Series “B” Preferred Stock is not convertible into common shares of American Spectrum Realty, Inc. The Series “B” Preferred Stock will be redeemed over a two-year period. The Series “B” Preferred Stock will earn a dividend calculated as simple interest at a rate of 8% from the closing date until December 31, 2014 and thereafter at a rate of 12%. Fifty percent of the dividends accruing before or on December 31, 2014 will be payable monthly and the remainder will accrue and be paid in a lump sum on December 1, 2015. All of the dividends that accrue after December 31, 2014 will be payable monthly.