-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DJe1cCgeQhlrCeQIWoKsbu7YAnV3kvfYSw9i3E5F13aR0JoS5d4lHHxhP14at2pO 6PUXRG4Y66b+jQSHucfn3w== 0001104659-03-028958.txt : 20031219 0001104659-03-028958.hdr.sgml : 20031219 20031219142303 ACCESSION NUMBER: 0001104659-03-028958 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20031210 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORNERSTONE REALTY FUND LLC CENTRAL INDEX KEY: 0001073149 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 330825254 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-76609 FILM NUMBER: 031064715 BUSINESS ADDRESS: STREET 1: 4590 MACARTHUR BLVD STREET 2: SUITE 610 CITY: NEWPORT BEACH STATE: CA ZIP: 92660 BUSINESS PHONE: 9498521007 MAIL ADDRESS: STREET 1: 4590 MACARTHUR BLVD STREET 2: SUITE 610 CITY: NEWPORT BEACH STATE: CA ZIP: 92660 FORMER COMPANY: FORMER CONFORMED NAME: CORNERSTONE INDUSTRIAL PROPERTIES INCOME & GROWTH FUND LLC DATE OF NAME CHANGE: 19981106 8-K 1 a03-6385_18k.htm 8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 8-K

 

Current Report

 

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):
December 10, 2003

 

CORNERSTONE REALTY FUND, LLC

(Exact name of registrant as specified in its charter)

 

California

 

333-107750

 

33-0827161

(State or Other Jurisdiction of
Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification
Number)

 

4590 MacArthur Blvd., Suite 610
Newport Beach, California 92660

(Address of principal executive offices)

 

(949) 852-1007

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

 

 

Item 2.  Acquisition or Disposition of Assets

 

Arrow Business Park, Irwindale, California

 

On December 10, 2003, we purchased an existing multi-tenant industrial business park known as the Arrow Business Center, a single-story three building property built in 1987 of approximately 69,592 square feet of leasable space on approximately 5.04 acres of land.  The acquisition price was $5,871,537 including $201,537 of closing costs, which equates to approximately $84 per square foot of leasable space.  The property is currently 98.4% leased to forty tenants whose spaces range in size from approximately 800 square feet to over 4,800 square feet. Currently, there is one 1,120 square foot vacant space. We expect to purchase this property for all cash, without debt financing.

 

The property’s historical occupancy rates are as follows:

 

Year Ending
December 31

 

Average Annual
Occupancy (%)

 

 

 

 

 

2000(1)

 

91

%

2001

 

94

%

2002

 

95

%

2003(1)

 

97

%

 

(1) reflects partial year data

 

The following table sets forth certain information with respect to the property’s existing leases at the date of acquisition:

 

Total Square
Feet Leased

 

Expiration
Date

 

Renewal
Options

 

Current
Annual
Rent ($)

 

Base rent
per sq.ft.
per annum ($)

 

 

 

 

 

 

 

 

 

 

 

2,240

 

Dec-03

 

—

 

17,203

 

7.67

 

800

 

Apr-04

 

—

 

6,870

 

8.59

 

800

 

Mar-05

 

—

 

6,720

 

8.40

 

1,120

 

Dec-04

 

—

 

8,602

 

7.68

 

800

 

Mar-04

 

—

 

6,824

 

8.53

 

1,120

 

Jul-05

 

—

 

8,736

 

7.80

 

1,120

 

Jul-05

 

—

 

8,856

 

7.91

 

800

 

Sept-05

 

—

 

6,720

 

8.40

 

800

 

Jun-04

 

—

 

6,144

 

7.68

 

1,600

 

Mar-04

 

—

 

13,074

 

8.17

 

1,120

 

Jun-04

 

—

 

9,408

 

8.40

 

2,720

 

Mar-05

 

—

 

20,094

 

7.39

 

800

 

Jun-06

 

—

 

6,528

 

8.16

 

1,120

 

Aug-05

 

—

 

8,870

 

7.92

 

1,120

 

Jul-05

 

—

 

7,392

 

6.60

 

800

 

Nov-05

 

—

 

6,720

 

8.40

 

1,120

 

Mar-05

 

—

 

8,870

 

7.92

 

800

 

Mar-05

 

—

 

6,720

 

8.40

 

800

 

Apr-05

 

—

 

6,720

 

8.40

 

1,120

 

Apr-05

 

—

 

8,602

 

7.68

 

 

F-2

 

Total Square
Feet Leased

 

Expiration
Date

 

Renewal
Options

 

Current
Annual
Rent ($)

 

Base rent
per sq.ft.
per annum ($)

 

 

 

 

 

 

 

 

 

 

 

1,120

 

May-04

 

—

 

8,602

 

7.68

 

800

 

Jun-05

 

—

 

6,528

 

8.16

 

1,120

 

Jul-05

 

—

 

8,602

 

7.68

 

800

 

Sep-04

 

—

 

6,912

 

8.64

 

1,120

 

Aug-05

 

—

 

8,870

 

7.92

 

2,160

 

May-04

 

—

 

22,032

 

10.20

 

1,082

 

Mar-04

 

—

 

10,744

 

9.93

 

966

 

Jun-04

 

—

 

11,284

 

11.68

 

2,078

 

Aug-04

 

—

 

21,037

 

10.12

 

2,078

 

Jun-04

 

—

 

19,637

 

9.45

 

2,160

 

Jun-06

 

—

 

26,676

 

12.35

 

4,096

 

Feb-04

 

—

 

39,489

 

9.64

 

2,172

 

Nov-04

 

—

 

22,154

 

10.20

 

3,200

 

Jan-05

 

—

 

25,560

 

7.99

 

3,200

 

Jul-04

 

—

 

28,416

 

8.88

 

3,200

 

Aug-04

 

—

 

27,412

 

8.57

 

3,200

 

Jun-04

 

—

 

25,335

 

7.92

 

3,200

 

Nov-04

 

—

 

25,344

 

7.92

 

4,800

 

Dec-05

 

—

 

37,440

 

7.80

 

3,200

 

Aug-06

 

—

 

25,344

 

7.92

 

1,120

 

 

 

—

 

 

 

 

 

 

No tenant occupies more than 7% of the rentable square footage.  These tenants operate varying business, including light manufacturing and distribution, light assembly and warehousing that encompasses a wide variety of businesses.

 

The following table sets forth lease expiration information for the next ten years:

 

Year Ending
Dec. 31

 

No. of
Leases
Expiring

 

Approx.
Amount of
Expiring Leases
(Sq. Feet)

 

Base Rent
Of Expiring
Leases
(Annual $)

 

Percent of
Total Leasable
Area Expiring
(%)

 

Percent of
Total
Annual Base
Rent Expiring
(%)

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

1

 

2,240

 

17,203

 

3.21

%

2.93

%

2004

 

19

 

35,592

 

319,320

 

51.15

%

54.39

%

2005

 

17

 

24,480

 

192,020

 

35.18

%

32.70

%

2006

 

3

 

6,160

 

58,548

 

8.86

%

9.98

%

2007

 

0

 

0

 

0

 

0.00

%

0.00

%

2008

 

0

 

0

 

0

 

0.00

%

0.00

%

2009

 

0

 

0

 

0

 

0.00

%

0.00

%

2010

 

0

 

0

 

0

 

0.00

%

0.00

%

2011

 

0

 

0

 

0

 

0.00

%

0.00

%

2012

 

0

 

0

 

0

 

0.00

%

0.00

%

 

F-3

 

For federal income tax purposes, the depreciable basis of the property is estimated to be  $3,495,489.  The depreciation expense will be calculated using the straight-line method, based upon an estimated useful life of 39 years for the building improvement costs and the related lease term for the tenant improvements.  Leasing commissions will be amortized over the initial term of the related leases.

 

Item 7.  Financial Statements and Exhibits

 

The required financial statements will be filed by an amendment to this Current Report on Form 8-K no later than 60 days after December 25, 2003.

 

F-4

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CORNERSTONE REALTY FUND, LLC

 

 

 

By:

CORNERSTONE INDUSTRIAL PROPERTIES, LLC

 

 

Its Managing Member

 

 

 

By:

CORNERSTONE VENTURES, INC.

 

Its Manager

 

 

By:

 /S/ TERRY G. ROUSSEL

 

 

 Terry G. Roussel, President

 

Dated:  December 18, 2003

 

F-5

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