UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 14, 2011
Presidential Realty Corporation
(Exact name of registrant as specified in its charter)
| DELAWARE | 1-8594 | 13-1954619 |
| (State or other jurisdiction | (Commission | (I.R.S. Employer |
| of incorporation) | File Number) | Identification Number) |
| | | |
| 180 South Broadway, White Plains, New York | 10605 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code (914) 948-1300
No change since last Report
(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 obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17CFR230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR240.13e-4(c))
| ITEM 1.01. | Entry into a Material Definitive Agreement and |
| ITEM 2.01. | Completion of Acquisition or Disposition of Assets |
On April 14, 2011, Presidential Realty Corporation sold its nonrecourse loan in the outstanding principal amount of $12,075,000 (the “Consolidated Note”). The Consolidated Note is secured by all of the ownership interests in entities owning nine apartment properties (1,056 apartment units) located in Virginia and 75% of the ownership interests in entities owning nine additional apartment properties (931 apartment units) located in Virginia and North Carolina, all of which entities are affiliated with The Lightstone Group (“Lightstone”). The carrying value of the $12,075,000 Consolidated Note on the Company’s consolidated balance sheet at December 31, 2010 was $2,074,994. The Consolidated Note was sold to another affiliate of Lightstone for $5,500,000 in cash pursuant to a Letter Agreement of Sale dated April 14, 2011, a copy of which is attached as Exhibit 99.2 and incorporated herein by reference. In connection with the sale, Presidential paid a brokerage commission of $150,000 to a broker unaffiliated with either Presidential or Lightstone and incurred additional expenses of approximately $10,000.
On April 18, 2011, Presidential issued a press release announcing the sale of the Consolidated Note, a copy of which is attached as Exhibit 99.1 and incorporated herein by reference.
| ITEM 9.01. | Financial Statements and Exhibits. |
(d) Exhibits
The following exhibits are filed herewith:
| | 99.1 | Press Release dated April 18, 2011. |
| | 99.2 | Letter Agreement of Sale dated April 14, 2011. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: April 19, 2011 | PRESIDENTIAL REALTY CORPORATION | |
| | | | |
| | By: | /s/ Jeffrey F. Joseph | |
| | | Jeffrey F. Joseph | |
| | | President | |
INDEX TO EXHIBITS
Exhibit No. Description
| 99.1 | Press Release dated April 18, 2011 |
| 99.2 | Letter Agreement of Sale dated April 14, 2011. |
