SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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). December 24, 2002
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 5. Other Events And Other Required FD Disclosure
On December 24, 2002, a joint venture in which the registrant is a 50% member
and the managing member acquired three (3) stadium-style movie theaters from one
purchaser. The purchases were made in an arms length transaction. Except for the
assumption of a mortgage applicable to one of the properties, as described
below, the consideration was paid by the joint venture in cash. Registrant
provided 50% of the cash requirements to the joint venture.
The following sets forth information concerning each of the purchases:
1. The joint venture purchased a 76,315 square foot, 18 screen movie
theater with stadium-style seating located in Henrietta (a suburb of Rochester),
New York. The theater is commonly referred to as the Regal Henrietta 18. The
property was purchased for a consideration of $10,488,000, of which $1,276,000
was paid in cash and $9,212,000 by the assumption of a first mortgage loan
secured by the property. The mortgage matures on March 1, 2022 and provides for
interest at the rate of 8.9441% per annum through June 1, 2017. As of that date
the interest rate is reset. Constant monthly payments of $77,794, are paid
through March 1, 2007, increasing to $83,831 per month for the next 5 years,
$90,533 per month for the next five years and $97,776 for the next five years,
with a final payment at maturity estimated to be $58,666.
The property is triple net-leased to Regal Cinemas, Inc. pursuant to a
lease dated April 18, 1996, as amended. The material terms and conditions of the
lease are as follows:
a. Original term expiring March 31, 2022.
b. Four option periods of five years each exercisable on at least
nine months prior notice.
c. Base annual rent of $1,101,225 increasing on April 1, 2007 (to
$1,183,646) and each five years thereafter in an amount specified in
the lease. The base annual rent increases in each option period by an
amount specified in the lease.
d. Percentage rent of 8% of the gross sales per year over a specified
break point.
2. The joint venture acquired an 81,836 square foot, 18 screen movie
theater with stadium-style seating located in Live Oak (a suburb of San
Antonio), Texas. The theater is commonly referred to as the Regal Live Oak 18.
The property was acquired by the joint venture for a purchase price of
$12,476,000. The property is triple net leased to Regal Cinemas, Inc. pursuant
to a Lease dated May 28, 1998, as amended.
The material terms and conditions of the lease are as follows:
a. Original term expiring on September 30, 2019.
b. Four option periods of five years each which are exercised
automatically unless declined by Tenant on at least nine months
prior notice.
c. Base annual rent is $1,309,990 for the period ending September
30, 2004 increasing by 10% at the start of the sixth year and
every fifth year anniversary thereafter (including renewals).
d. Percentage rent of 8% of net sales per year minus the base rent for
that year.
e. Tenant has a one time right of first offer on a sale of the property.
3. The joint venture acquired a 60,732 square foot, 17 screen movie theater
with stadium-style seating located in Lubbock, Texas. The theater is commonly
referred to as the Cinemark Tinseltown 17. The property was acquired for a
consideration of $7,872,000. The property is triple net-leased to Cinemark, USA
Inc. pursuant to a lease dated January 6, 1998, as amended. The following sets
forth the material terms and conditions of the lease.
a. Original term expiring December 31, 2018.
b. Four option periods of five years each exercisable on six months prior
notice.
c. Base annual rent is $826,568 through December 31, 2003 increasing
on January 1, 2004 (to $856,408) and each five years thereafter in
the amount specified in the lease. The base annual rent increases
in each option period by the amount specified in the lease.
Signatures
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 officer thereunto duly authorized.
ONE LIBERTY PROPERTIES, INC.
Date: December 26, 2002 By: /s/ Simeon Brinberg
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Simeon Brinberg
Senior Vice President
(8KOLPDEC262)