19.

Subsequent Events

Sealy Airpark Nashville – Foreclosure – On October 7, 2013 the lender foreclosed on the loan that was collateralized by the venture’s property located in Nashville, Tennessee. The Trust did not recognize a gain or loss in connection with the foreclosure as the investment was carried at $0 for financial reporting purposes.

WRT-Fenway Wateridge – Mortgage Loan – On October 15, 2013 the venture obtained a $7,000,000 first mortgage loan on its San Diego, California property. The loan bears interest at the greater of 6%, or LIBOR plus 4.5% per annum, requires monthly payments of interest only and matures on November 1, 2016. The venture purchased an interest rate cap which caps LIBOR at 2.5%. In connection with the financing, the Trust received a distribution of $6,255,000 in partial redemption of its preferred equity investment. The Trust retains the balance of its preferred equity interest as well as a 50% equity interest in the venture.

WRT-Elad Equity – Mortgage Loan Refinancing – On October 18, 2013 the venture which owns the property known as the Sullivan Center located at One South State Street, Chicago, Illinois obtained a new $113,500,000 first mortgage loan. The loan bears interest at a rate of 3.95% per annum, requires monthly payments of interest only and matures on November 6, 2018. The proceeds from the loan were used to repay the existing $110,550,000 first mortgage loan which bore interest at a rate of 11.0% per annum.

Summit Pointe Apartments – Equity Investment – On October 25, 2013 the Trust contributed $4,933,000 for an 80% preferred equity interest in a newly formed venture. On the same date, the venture acquired a 184 unit garden apartment complex known as Summit Pointe Apartments located in Oklahoma City, Oklahoma for a gross purchase price of $14,500,000. In connection with the acquisition, the venture assumed an existing $9,248,000 first mortgage loan. The loan bears interest at a rate of 5.7% per annum, requires monthly payments of principal and interest and matures in February 2021. Management for the venture has not finalized the acquisition accounting and therefore is not able to provide the disclosures otherwise required by ASC 805.

Pursuant to the terms of the venture agreement, the Trust will hold a preferred equity interest which entitles it to an 8% preferred return from cash flow and, upon disposition of the property, a minimum preferred return equal to a 12% IRR.

Luxury Residential – Property Acquisition – On October 31, 2013 the Trust closed on its acquisition of four newly constructed Class A luxury apartment buildings for an aggregate purchase price of $246,000,000. The properties are located in Phoenix, Arizona; Stamford, Connecticut; Houston, Texas and San Pedro, California. The acquisition was funded with a $150,000,000 first mortgage loan which is cross collateralized by all four properties. The loan bears interest at a rate of LIBOR plus 2%, requires monthly payments of interest only and matures on October 31, 2016 with two one year extension options. The balance of the purchase was funded from cash on hand. Management has not finalized the acquisition accounting and therefore is not able to provide the disclosures otherwise required by ASC 805.

On November 6, 2013, New Valley LLC (“New Valley”) contributed approximately $16,350,000 to the entity that acquired the properties in exchange for an indirect 16.3% interest in the properties. Winthrop retained the balance and has the right to make all decisions with respect to each of the properties other than the Stamford, Connecticut property, subject to obtaining New Valley’s consent to certain major decisions. With respect to the Stamford, Connecticut property, prior to November 6, 2016 the consent of New Valley is required on all matters other than those that are administrative in nature. New Valley has the right at any time after November 6, 2015 (or in certain instances prior thereto), but on or prior to November 6, 2016, to have its interest in the venture redeemed for a 50% interest in the Stamford, Connecticut property.