Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

18. Subsequent Events

Newbury Refinance - On October 2, 2012 the Trust refinanced the first mortgage debt on its Meriden, Connecticut property, Newbury Village Apartments, (“Newbury”). The principal amount of the new loan is $21,000,000, bears interest at 3.95% per annum and matures on October 2, 2022. The loan requires payments of interest only for 24 months followed by principal and interest payments for the remaining term. After settlement expenses and repayments on the existing debt the transaction generated net proceeds of approximately $7,308,000.

Arboretum – On October 2, 2012 the Trust fully satisfied its mortgage loan payable of $1,657,000 collateralized by the Lisle, Illinois property referred to as 701 Arboretum.

Cerritos – On October 4, 2012 the Trust purchased from an affiliate of FUR Advisors for $75,000 (the affiliate’s cost) a 100% membership interest in the entity that holds fee simple title to a nine story, 187,000 square foot, 53% occupied, Class B office building located 20 miles south of Los Angeles in Cerritos, California. In addition, the Trust funded a $1,500,000 leasing reserve and a $375,000 loan restructuring fee as part of the transaction. Concurrently with the acquisition of the property, the Trust entered into a modification agreement with the first mortgage lender pursuant to which the loan was split into a $23,000,000 A Note and a $14,500,000 B Note. The A Note bears interest at 5.0691% per annum and requires payments of interest only. The B Note bears interest at 6.6996% per annum and requires monthly payments of approximately $12,000 with the balance of the interest accruing. In connection with the modification, after payment of required monthly debt service on the A Note and the B Note, the Trust is entitled to receive from property cash flow a 9.0% return on any additional funding to the property (including the $1,500,000 leasing reserve). With respect to a capital transaction, all net proceeds go first to satisfy the A Note, second to the Trust until it receives a return of its additional funding to the property plus its 9.0% return thereon, third 50-50 to the Trust and the first mortgage lender until the principal amount of the B Note and accrued interest thereon is fully satisfied and fourth to the Trust. The allocation of the purchase price is not yet finalized.

Broward Financial Center Loan - On October 9, 2012 the Trust’s loan asset collateralized by Broward Financial Center in Fort Lauderdale, Florida, was repaid in full by the borrower. The Trust received $30,000,000 in cash proceeds from this loan which was originally purchased at par. No gain or loss was recognized by the Trust upon the repayment of the loan.

701 Seventh Avenue - On October 16, 2012, the Trust entered into joint venture to acquire and redevelop a 120,000 square feet property and associated air rights located at 701 Seventh Avenue in New York City. The property is on the northeast corner of Seventh Avenue and 47th Street in Times Square. The proposed redevelopment will include an expansion of the retail space to approximately 80,000 square feet, installing an approximately 22,000 square foot state of the art LED sign, and potential development of a hotel. Winthrop has committed to invest up to $68,000,000 on a preferred equity basis with an initial contribution of approximately $29,000,000.

Cedar Realty Trust – On October 18, 2012, the Trust sold 3,250,000 of its 6,250,716 common shares in Cedar Realty Trust (“Cedar”) in a block trade for net proceeds of approximately $17,160,000. Accordingly, the Trust now holds 3,000,716 shares of common stock in Cedar.

Share Repurchase - On November 1, 2012 the Trust’s Board of Trustees has approved a share repurchase plan pursuant to which the Trust will be permitted to repurchase up to 1,500,000 of its outstanding Common Shares at prices to be determined by the Board of Trustees.

Lake Brandt - On November 2, 2012, a wholly-owned subsidiary of the Trust acquired a 284 unit multi-family property for an aggregate purchase price of $17,500,000. The property, which is located in Greensboro, North Carolina, is presently 96% occupied. In connection with this acquisition, the subsidiary assumed the existing $13,600,000 non-recourse mortgage loan which bears interest at 6.22% per annum, matures on August 1, 2016 and requires payments of interest only. The allocation of the purchase price is not yet finalized.