UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
December 2, 2010
Date of Report (Date of earliest event reported)
CORNERSTONE REALTY FUND, LLC
(Exact name of registrant as specified in its charter)
| California | | 000-51868 | | 33-0827161 |
| (State of Incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification Number) |
1920 Main Street., Suite 400 Irvine, California 92614 |
| (Address of principal executive offices) |
(949) 852-1007
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions.
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14d-2(b)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
Item 1.01 Entry into a Material Definitive Agreement
The information in this report set forth under item 2.03 is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On December 2, 2010, we entered into a $4.0 million loan agreement with Farmers & Merchants Bank of Long Beach, a California corporation. The loan matures on November 19, 2013 with no option to extend and bears interest at a fixed rate of 5.75% per annum. Monthly payments of principal and interest will be due under the loan in the amount of $23,556. A final irregular payment of approximately $3,862,363 will be due and payable on the maturity date. We may repay the loan, in whole or in part, on or before November 19, 2013 without any penalty. The loan agreement contains various covenants including financial covenants with respect to debt service coverage ratios and loan to value ratio.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | CORNERSTONE REALTY FUND, LLC |
| | |
| | By: | CORNERSTONE INDUSTRIAL PROPERTIES, LLC |
| | Its Managing Member |
| | |
| | | By: | CORNERSTONE VENTURES, INC. |
| | | Its Manager |
| | | |
| | | By: | /s/ Sharon C. Kaiser | |
| | | | Sharon C. Kaiser, Chief Financial Officer | |
| | | |
| Dated: December 7, 2010 | | |
