American Spectrum Realty Announces Completion of Loan Refinance
June 26 2012 - 8:55AM
Business Wire
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.
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
multi-family properties throughout the United States. The company
has been publicly traded since 2001. American Spectrum Realty
Management, LLC (“ASRM”) 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.
ASRM provides first-class management and leasing services for
office, industrial, retail, self-storage, and multi-family
properties, totaling over 11 million square feet in 18 states.
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.
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