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Subsequent Event
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
Subsequent Event

13. Subsequent Event

 

On April 27, 2016, PCM, Inc. (the “Seller”) entered into an agreement with Spigen, Inc. (the “Buyer”) to sell certain real property in Irvine, California (the “Irvine Property”) for approximately $13.2 million. The Irvine Property includes approximately 60,000 square feet of office and warehouse space and land. The Buyer and Seller agreed to a 60 day escrow period, with the Buyer making a deposit of $290,000 into escrow. Buyer is entitled to a 30 day financing contingency period during which if Buyer fails to obtain satisfactory financing and upon notice to Seller, the deposit is refundable to Buyer. Certain of our subsidiaries occupy the building, and will continue to use the office and warehouse space under a 60 day sale-leaseback arrangement upon the close of escrow for $30,000 per month.

 

We purchased the Irvine Property in March 2015 for approximately $5.8 million and financed $4.9 million with a long-term note. Upon closing of the sale of the Irvine Property, which we anticipate to be in mid-2016, we expect to realize a pre-tax gain of approximately $7.4 million. We expect to pay-off the outstanding balance on the note of approximately $4.7 million at closing of escrow.