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 11, 2000
ONE LIBERTY PROPERTIES, INC.
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(Exact name of registrant as specified in charter)
Maryland 0-11083 13-3147497
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(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
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code 516-466-3100
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Item 2. Acquisition or Disposition of Assets.
On April 11, 2000, in an ordinary course of business transaction, a
wholly owned subsidiary of the Registrant acquired an approximately 402,200
square foot manufacturing building and an approximately 56,000 square foot
office building both situated on approximately 49 acres located in Hanover,
Pennsylvania for a consideration of approximately $11,463,000. The property was
financed at closing by taking title subject to an existing first mortgage with a
balance of approximately $9,014,727. The property is triple net leased to The
ESAB Group, Inc.
Summaries of the material terms of the mortgage and the lease follow:
MORTGAGE SUMMARY
DATE: Original Open-End Mortgage and Security Agreement
dated as of April 9, 1998; Loan Assumption and
Modification Agreement dated as of April 11, 2000
LENDER: LaSalle Bank National Association f/k/a LaSalle
National Bank, as Trustee for Registered Holders
of GMAC Commercial Mortgage Securities, Inc.,
Mortgage Pass-Through Certificates Series 1998-C2
PRINCIPAL
AMOUNT: $9,014,727.03 (reduced from $9,250,000.00).
INTEREST RATE: 7.55%.
MATURITY DATE: May 1, 2005.
MONTHLY
PAYMENTS: The monthly payment is $68,657.81. Monthly reserves
are required for real estate taxes and insurance but
only to the extent same are in excess of amounts the
Tenant is required to pay directly (Tenant pays all
such charges directly).
Monthly, interest-bearing reserves for leasing
commissions/TI work and for a replacement reserve are
also required ($2,083.33/month for leasing/TI as of
May 1, 2000, subject to specified increases in May of
2002 and May of 2003 and $1,041.67/month for the
replacement reserve.
PREPAYMENT: Not permitted until May 1, 2001. Thereafter, in whole
only on 30 to 60 days notice with payment of a
prepayment fee equal to the greater of (a) 1% of the
amount being prepaid or (b) a present value formula
as set forth in the Note. Lender may elect to require
defeasance in lieu of prepayment. No prepayment fee
is due for prepayments within 6 months of maturity or
for prepayments resulting from casualty or
condemnation.
RECOURSE: The loan is non-recourse. There is no guarantor.
LEASE SUMMARY
TENANT: The ESAB Group, Inc.
LEASE DATE: As of July 8, 1988, as modified.
USE: As an office, lab or manufacturing facility.
TERM: Initial term commenced July 8, 1988, and the
expiration date is July 8, 2008.
ANNUAL RENT: Payable quarterly in arrears, as set forth from
the lease.
$318,228.89 until July 8, 2003
$339,629.83 until July 8, 2008
Quarterly rent for the renewal terms will be
$356,611.32 (first renewal term) and $374,411.86
(second renewal term).
REAL ESTATE
TAXES: Tenant's responsibility.
MAINTENANCE
AND REPAIRS: Tenant's responsibility.
REMAINING
RENEWAL
OPTIONS: Two for 5 years each, each on one year's notice;
rent during the option terms is as set forth in
"annual rent" above.
INSURANCE: Tenant to maintain all risk insurance on the Premises
and its personal property, for at least replacement
cost, and comprehensive general public liability
insurance (at least $5,000,000 per occurrence, and
such other coverages as are customary.
UTILITIES: Tenant's responsibility.
OPTION TO
PURCHASE: Tenant has the option to purchase the Premises on the
last day of the initial term or any exercised
extended term (on one year's notice), at the then
fair market value of the Premises "as encumbered by
the Lease".
MISCELLANEOUS: Landlord has an option to purchase a certain waste
treatment facility and equipment located on the
Premises upon the termination of the Lease, on 60
days notice, at fair market value.
Item 7. Financial Statements
Financial statements relating to the acquisition described in Item 2
have not been included in this report and will be filed prior to May 28, 2000.
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.
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.
ONE LIBERTY PROPERTIES, INC.
By: /s/ Mark H. Lundy
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Mark H. Lundy
Vice President and Secretary