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) June 14, 1994
BRT REALTY TRUST
(Exact name of registrant as specified in charter)
Massachusetts I-7172 13-2755856
(State or other (Commission File No.) (IRS Employer
jurisdiction of I.D. No.)
incorporation)
60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (516) 466-3100
Item 5. Other Events
On June 14, 1994, a subsidiary of BRT Realty Trust ("BRT")
indirectly sold for cash the fee interest of a property
located in midtown Manhattan ("Property") to One Liberty
Properties Inc. ("One Liberty"), a related party, for a
consideration of $5,250,000. The transaction and sales
price were approved by the Board of Trustees of BRT,
including the independent trustees, subject to receipt of an
independent real estate appraisal. After receipt of an
independent real estate appraisal from Cushman & Wakefield
substantiating the purchase price of $5,250,000, the
transaction was completed, resulting in a gain to BRT of
approximately $687,000.
The Property was sold subject to a long term net lease with
a current annual rent of $550,000, which annual rent
increases by $50,000 every five years (the next increase in
1999). The lease is commonly referred to as a triple net
lease, with the tenant being responsible for taxes,
utilities, insurance and repairs (structural and non-
structural). The Property consists of a thirteen-story plus
penthouse elevator building and a seven-story elevator
building containing a total of 126 apartments, 11 stores and
one office. For a period of ten years from the closing, BRT
will receive fifty (50%) percent of any premium which One
Liberty receives under the lease as a result of the
conversion of the leasehold position to cooperative
ownership.
The transaction, including the price, was recommended to the
Board of Trustees by Fredric H. Gould, the Chairman of the
Board of Trustees, Israel Rosenzweig, President and Jeffrey
Gould, Executive Vice President. It was recommended by
these officers after the asset was valued, taking into
consideration the rental stream to be paid to the fee
position during the remaining term of the lease and the type
and location of the property, subject to receipt of an
independent appraisal. The entire consideration was paid in
cash, thereby affording BRT the ability to pay off a prior
lien of $2,654,960 against this asset and to reduce its bank
debt by approximately $1,600,000.
Fredric H. Gould, Chairman of the Board of Trustees of BRT
is also Chairman of the Board of One Liberty, Marshall Rose,
Vice Chairman of BRT, is Vice Chairman of One Liberty and
Matthew Gould, Vice President of BRT, is President of One
Liberty. In addition, Arthur Hurand, a member of the Board
of Trustees of BRT, is a director of One Liberty, Israel
Rosenzweig and Nathan Kupin, Trustees of BRT are Vice
Presidents of One Liberty and Simeon Brinberg, David W.
Kalish and Jeffrey Gould, are officers of One Liberty.
All of the individuals listed above as well as One
Liberty, are holders (directly or indirectly) of shares
of beneficial interest of BRT. One Liberty hold
203,767 shares of beneficial interest of BRT, and is
also the sole holder of the 1,030,000 shares of
preferred stock outstanding, representing 14.7% of the
shares entitled to vote. Also, Gould Investors L.P.
("Gould"), a master limited partnership in which
Fredric H. Gould and Marshall Rose are general partners
and principal executive officers of Gould's corporate
managing partner, owns 917,400 shares of Common Stock
of One Liberty, representing 68.5% of the outstanding
Common Stock and 52.6% of the voting power of One
Liberty. Israel Rosenzweig, Matthew Gould, Jeffrey
Gould, Simeon Brinberg and David Kalish, officers of
BRT and One Liberty, are also officers of Gould's
corporate managing general partner.
For further ownership information, reference is made to the
Notice of Annual Meeting of Shareholders and Proxy Statement
of BRT dated March 7, 1994. Reference is also made to the
Form 8-K of One Liberty Properties, Inc. dated June 27,
1994.
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 thereunto duly authorized.
BRT REALTY TRUST
Date: June 28, 1994 By:
Simeon Brinberg, Secretary