EXHIBIT 99.13
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AT THE TRUST
Robert G. Higgins Investor Relations
First Vice President, General Counsel L.G. Schafran - Chairman and
630-218-7255 Interim CEO/President
bhiggins@banyanreit.com 630-218-7250
ir@banyanreit.com
FOR IMMEDIATE RELEASE
TUESDAY, JUNE 18, 2002
BANYAN STRATEGIC REALTY TRUST AND NORTHLAKE PURCHASER EXTEND
DUE DILIGENCE PERIOD; NEGOTIATING LATER CLOSING DATE;
ADDITIONAL $0.20 LIQUIDATING DISTRIBUTION ANNOUNCED
OAK BROOK, ILLINOIS - JUNE 18, 2002 - BANYAN STRATEGIC REALTY TRUST
(Nasdaq: BSRTS) announced today that it has executed an amendment of the
real estate sale contract pertaining to the Trust's single remaining
property, Northlake Tower Festival Mall, which had been scheduled to close
on July 17, 2002.
The amendment extends the due diligence period from June 17, 2002 to
June 19, 2002. The brief two-day extension of the due diligence period was
granted at the purchaser's request, in order to allow the purchaser to
reschedule a board of directors meeting, from June 14 to June 19.
Pursuant to the contract, as amended, the purchaser may terminate the
contract without any penalty prior to the end of the due diligence period
(June 19). On June 19, 2002, if the purchaser elects not to terminate, the
purchaser must increase its earnest money deposit, from $200,000 to
$400,000, and thereafter is entitled to termination without penalty, only
if the Trust's first mortgage lender fails to approve the purchaser's
application for loan assumption. A decision on that application is now
anticipated in early to mid-August.
The Trust also announced that it is negotiating with the purchaser a
proposed second amendment, that, if executed, would extend the period
within which the purchaser must obtain approval of the assumption of the
Trust's first mortgage loan, from June 10, 2002 to August 25, 2002, and
would extend the closing date from July 17, 2002 to September 17, 2002.
The Trust noted that the amendment was necessitated by a longer than
anticipated approval procedure for the assumption of the Trust's first
mortgage loan, a key element of the transaction.
LIQUIDATING DISTRIBUTION
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The Trust announced that it will make a fourth interim liquidating
distribution, in the amount of $0.20 per share, on July 15, 2002, to
shareholders of record as of July 1, 2002. Giving effect to the fourth
distribution, the Trust will have made liquidating distributions totaling
$5.45 per share since adopting its Plan of Termination and Liquidation in
January of 2001.
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BANYAN STRATEGIC REALTY TRUST
ADD 1
L. G. Schafran, Chairman, CEO and Interim President of Banyan, commented on
the distribution, stating: "We are pleased to announce this additional
distribution to our shareholders, which arises from the settlement of post-
closing items in the Denholtz transaction (announced on May 15, 2002), and
the receipt of almost $2 million in notes receivable (announced on June 4,
2002). With the delay in the anticipated receipt of the Northlake sale
proceeds, and in keeping with our stated policy of making distributions as
conditions warrant, we have determined to distribute this money sooner, and
not to await the Northlake closing before making this distribution."
NASDAQ DELISTING
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In other news, the Trust stated that the previously-announced hearing
before The Nasdaq Listing Qualifications Panel, to review a staff
determination that the Trust's shares of beneficial interest ought to be
immediately delisted, is proceeding on June 20, 2002 as scheduled. The
Trust reiterated that there can be no assurance that the Panel will grant
the Trust's request for continued listing on the Nasdaq National Market
System. The Trust also noted that if delisting does occur, the Trust will
not receive any advance notice of the Nasdaq determination.
If the Trust is not successful in obtaining continued listing on Nasdaq,
the Trust intends to list its shares of beneficial interest on the Over the
Counter Bulletin Board.
LEVINE LITIGATION
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The Trust added that the ongoing litigation between the Trust and its
suspended president, Leonard G. Levine, continues. Written discovery is
now scheduled to close on September 30, 2002 and oral fact discovery is
scheduled to close on October 31, 2002. All expert witness disclosure and
depositions are to be concluded by December 13, 2002. The Trust currently
anticipates a trial date in the first or second quarter of 2003.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that adopted a Plan of Termination and Liquidation on January 5,
2001. On May 17, 2001, the Trust sold approximately 85% of its portfolio
in a single transaction. Other properties were sold on April 1, 2002 and
May 1, 2002. Banyan now owns a leasehold interest in one (1) real estate
property located in Atlanta, Georgia, representing approximately 9% of its
original portfolio. This property is subject to a contract of sale,
currently scheduled to close on July 17, 2002, but is expected to be
extended to a September 17, 2002 closing date. Since adopting the Plan of
Termination and Liquidation, Banyan has made liquidating distributions
totaling $5.25 per share. An additional distribution of $0.20 per share is
scheduled for July 15, 2002. As of this date, the Trust has 15,496,806
shares of beneficial interest outstanding.
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BANYAN STRATEGIC REALTY TRUST
ADD 2
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement
of which involve risks and uncertainties such as the sale of the Trust's
remaining property, the amount of the remaining liquidating distributions,
the outcome of pending litigation and other risks and uncertainties that
are detailed from time to time in the Trust's reports filed with the
Securities and Exchange Commission, including the report on Form 10-K for
the year ended December 31, 2001 which was filed with the Securities and
Exchange Commission on March 21, 2002. Please see also the "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
section which was included in our Form 10-Q for the quarter ended March 31,
2002 which was filed with the Securities and Exchange Commission on May 6,
2002. Without limitation, the foregoing words such as "anticipates",
"expects", "intends", "plans", and similar expressions are intended to
identify forward-looking statements.
See Banyan's Website at http://www.banyanreit.com.
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