American Spectrum Realty Announces Completion of Loan Refinance
HOUSTON--(BUSINESS WIRE)-- American Spectrum Realty, Inc. (AMEX:AQQ) (the Company), a real estate investment, management and leasing company headquartered in Houston, Texas, announced today that it has completed a loan refinance on its self-storage facility in Houston, Texas (A-Plus Self Storage). The new loan for A-Plus Self Storage, in the amount of $2,030,000, is for a 10 year term and bears interest at a fixed rate of 5.55% per annum. The propertys annual net cash flow is anticipated to increase by approximately $75,000 as a result of the refinance.
A-Plus Self Storage is a 76,250 square foot, 466 unit facility, located on Sabo Road and is managed by American Spectrum Realty Management, LLC (ASRM). The property operates under the 1st American Storage brand. When ASRM began managing and leasing the property in January of 2010, occupancy was severely low and the property value was less than the loan principal balance, with the loan maturing in August 2011. American Spectrum Realty Advisors, LLC (ASRA) negotiated a 12 month extension with the lender.
Due to 1st American Storages cost-efficient branding, aggressive marketing strategies, and streamlined operations, A-Plus Self Storage was able to increase occupancy to 93 percent, increase gross revenue, decrease expenses and therefore, increase net operating income (NOI) by 72% or $105,000 per year. These efforts increased the appraised value of the property and allowed American Spectrum Realty Advisors, LLC to successfully negotiate a new loan with C-III Commercial Mortgage. The transaction closed on Thursday, June 21, 2012 and reduced the propertys interest rate by 187 basis points.
1st American Storage is a registered trademark of American Spectrum Realty, Inc. Through strategic partnerships and brand leveraging, ASRM is able to bring significant cost savings to third-party clients. 1st American Storage is a brand that represents value, integrity, and customer service within the industry.
ASRA is a real estate consulting company that provides its clients with a turn-key approach to its investments, advising on all aspects of real estate, from loan workout solutions to exit strategies. ASRA's strategy is to provide creative solutions for its clients real estate to outperform the market and grow the value of their assets. ASRA is a wholly-owned subsidiary of the Company.
American Spectrum Realty, Inc. is a real estate investment company that owns, through its operating partnership, interest in office, industrial, self-storage, retail properties, and multi-family properties throughout the United States. The company has been publicly traded since 2001. American Spectrum Realty Management, LLC (ASRM) is a wholly-owned subsidiary of the Company that manages and leases all properties owned by American Spectrum Realty (AQQ), Inc. as well as third-party clients.
ASRM provides first-class management and leasing services for office, industrial, retail, self-storage, and multi-family properties, totaling over 11 million square feet in 18 states.
Certain matters discussed in this release are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including the risks and uncertainties of acquiring, owning, operating and disposing of real estate. Such risks and uncertainties are disclosed in the Companys past and current filings with the U.S. Securities and Exchange Commission.
American Spectrum Realty, Inc.
William J. Carden, 713-706-6200
Chairman, President and CEO
Source: American Spectrum RealtyCopyright Business Wire 2012