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GREAT NECK, NY-Locally based One Liberty Properties has entered into three contracts to sell 10 movie theatre properties for an aggregate of approximately $178 million. Entities wholly-owned by two joint ventures of OLP agreed to sell to a single buyer eight properties, while a wholly-owned subsidiary of OLP will sell to the same buyer one property.
The aggregate consideration of those transactions is $161.8 million. Approximately $146.7 million has been allocated to the eight properties and approximately $15.2 million has been allocated to the other site.
According to an SEC filing on the contracts, ECM Diversified Income & Growth Fund LLC is the purchaser. The joint ventures are identified as OLP Chula Vista Corp.; OLP Norwalk LLC; OLP Austell, LLC; OLP Beavercreek LLC; OLP Southlake, LLC; OLP Roanoke LLC; OLP Lubbock Venture LP; OLP Live Oak LP and OLP Henrietta LLC. Currently the aggregate annual rent under the leases applicable to the eight properties is $10.4 million, and the annual rent under the lease for the other site is $1.1 million.
In the other transaction, HID Acquisition Group LLC has agreed to acquire 187-191 Prospect Park West, aka, Brooklyn Pavilion for approximately $16 million. The annual rent under the property's lease is currently $1.1 million.
OLP says some or all of its proceeds may be deferred for income tax purposes by entering into one or more tax-deferred exchanges. One Liberty is a REIT that specializes in the acquisition and ownership of a long-term net leased portfolio.
The buyer of the nine properties has a 35-day due diligence period in which is may, in its sole discretion, terminate the contract. The closings, which are subject to customary terms and conditions, are expected within 75 days.
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