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Sofitel Hotel Invested in Winthrop Realty Trust

Monday, 06 June 2011 17:04

Hotel Real Estate News NYC

Source: Winthrop Realty Trust

Winthrop Realty Trust Announces Recent Transactions

$112 Million Capital Deployed and Committed

BOSTON, June 6, 2011 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR), a diversified REIT that focuses on opportunistic debt and equity investments in real estate, has executed or entered into several agreements positively effecting its equity owned property portfolio and its loan portfolio deploying and committing to deploy since January 1, 2011 an aggregate capital amount of $112.0 million. In addition, the Company has sold or received repayments totaling $75.0 million on outstanding loans.

"With capital commitments, we have deployed $112.0 million of capital on a year to date basis and have taken in $75.0 million in loan repayments or property sales. Our pipeline remains full and we continue to identify accretive opportunistic transactions which we can add to our portfolio and selectively prune fully valued assets," commented Michael Ashner, Chief Executive Officer.

Acquisitions

• Acquired a $15.0 million preferred equity interest in the entity that holds the leasehold interest in a newly constructed 70% pre-leased 102,000 square foot retail and office property located on the High Line at 450 West 14^th Street, New York, New York. The investment is subject to a $54.0 million first mortgage loan.
• Acquired for $17.5 million, a $20.0 million senior mezzanine loan secured by six apartment complexes located in Florida, containing an aggregate of 2,106 units. The loan is scheduled to mature in July 2011 and is expected to generate a yield to maturity of 15.8%.
• Invested $5.76 million to acquire a 50% economic interest in a $71.5 million mezzanine loan held by Concord Debt Holdings ("Concord") secured by an interest in the Sofitel hotel in New York City. The loan is encumbered by a $56.2 million repurchase obligation.
• Its Northwest Atlanta joint venture with Sealy entered into an agreement with the lender holding the mortgage loan on the joint venture's property which will enable the joint venture to satisfy the $28.75 million loan at a discounted payoff amount of $20.5 million at any time prior to June 30, 2011.
• Concord satisfied its KeyBank loan resulting in an expected current annual distribution to Winthrop of approximately $680,000, exclusive of any distributions on account of the Concord CDO. As a result of the loan being satisfied, Concord's interest in each of the following assets are now unencumbered: (i) the CNL Hotel portfolio; (ii) five mezzanine loans with an outstanding principal balance of $18.6 million; (iii) the ownership of One Riverwalk, a 240,000 square foot office building in San Antonio, Texas which is 70% leased and subject to a $14.0 million loan; and, (iv) six CMBS and CRE CDO bonds.

Sales and Repayments:

• Sold to its partner, Marc Realty, for $18.5 million its interest in three properties in its Marc Realty Portfolio (8 S. Michigan, 11 E. Adams and 29 E. Madison), the purchase price for which was paid $6.0 million in cash and a $12.5 million secured promissory note which bears interest at 8% per annum, requires payments of interest only and matures May 31, 2016.
• Received repayment on its two recently acquired non-performing first mortgage loans secured by two retail centers located in Riverside County, California. Winthrop received repayment of $18.8 million on its $18.1 million investment for an annualized return of 30%.
• Received repayment on its recently acquired first mortgage secured by a 26-story, 66-room boutique hotel located on 46^th Street between 5^th and Madison Avenues in New York, New York. Winthrop received repayment of $8.66 million on its $7.98 million investment for an annualized return of 34%.

Winthrop Realty Trust is a NYSE-listed real estate investment trust (REIT) headquartered in Boston, Massachusetts. Additional information on Winthrop Realty Trust is available on its Web site at www.winthropreit.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively impact the matters herein described. These are detailed from time to time in the "Risk Factors" section of the Company's SEC reports. Further information relating to the Company's financial position, results of operations, and investor information is contained in the Company's annual and quarterly reports filed with the SEC and available for download at its website www.winthropreit.com or at the SEC website www.sec.gov.

CONTACT: Winthrop Realty Trust Beverly Bergman Investor or Media Inquiries Phone: (617) 570-4614 e-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it