UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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ITEM 2.01. Completion of Acquisition or Disposition of Assets.
On August 31, 2022, FSP 380 Interlocken Corp. and FSP 390 Interlocken LLC (together, the “Seller”), each a wholly-owned subsidiary of Franklin Street Properties Corp. (the “Registrant”), closed on the sale of the office buildings located at 380 Interlocken Crescent, Broomfield, Colorado and at 390 Interlocken Crescent, Broomfield, Colorado (together, the “Property”) to 380 Interlocken Owner, LLC and 390 Interlocken Owner, LLC (as successors-in-interest to RWXI REIT Acquisition, LLC, and together, the “Buyer”), pursuant to a Purchase and Sale Agreement dated June 21, 2022, as amended pursuant to a Reinstatement of and First Amendment to Purchase and Sale Agreement dated July 6, 2022 (as amended, the “Agreement”). There were no material relationships, other than in respect of the Agreement, among the Seller and the Buyer, or any of their respective affiliates. The aggregate gross purchase price for the Property was $102,500,000. The Registrant expects to record a gain of approximately $24,000,000 million in the third quarter of 2022 in connection with the sale of the Property. On September 6, 2022, the Registrant used proceeds from the sale of the Property to prepay in full its $110,000,000 term loan with Bank of America, N.A. as administrative agent and the other lending institutions party thereto (the “BofA Term Loan”). If the Registrant had not prepaid the BofA Term Loan in full, the BofA Term Loan would have matured by its own terms on January 12, 2023.
ITEM 9.01. Financial Statements and Exhibits.
(b)Pro forma financial information.
The pro forma financial information of the Registrant as adjusted to give effect to the sale of the Property is presented in the unaudited pro forma condensed consolidated financial statements filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
(d)Exhibits.
The following exhibits are filed herewith:
EXHIBIT NO.DESCRIPTION OF EXHIBITS
99.1 | Unaudited Pro Forma Condensed Consolidated Financial Statements. |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
FRANKLIN STREET PROPERTIES CORP. | ||
Date: September 7, 2022 | By: | /s/ Scott H. Carter |
Scott H. Carter | ||
Executive Vice President, General Counsel and Secretary | ||
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