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: April 9, 2004
FIRST REAL ESTATE INVESTMENT TRUST OF NEW
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JERSEY (Exact name of registrant as specified in its charter)
New Jersey 22-1697095
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(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
505 Main Street, P.O. Box 667, Hackensack, New Jersey 07602
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 201-488-6400
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Item 5. Other Events
Hackensack, N.J. - April 12, 2004 - First Real Estate Investment Trust ("FREIT")
announced that on April 9, 2004, its 75% owned subsidiary, S and A Commercial
Associates Limited Partnership ("S and A") entered into a contract for the sale
of the Olney Town Center ("OTC"), a shopping center owned by S and A and located
in Olney, Maryland. The sale price for the property is $28.2 million. The
property was acquired in April 2000 for approximately $15.5 million. The
contract provides that the purchaser will have a 14-day due diligence period
ending on April 23, 2004 in which to further examine and evaluate the property.
If the purchaser elects to proceed with the purchase at the end of the due
diligence period and other conditions to closing are satisfied, the sale is
expected to close on or about June 15, 2004.
On February 6, 2004 S And A entered into a contract to purchase The Pierre
apartments. The Pierre is a 269-unit luxury high-rise apartment building located
in Hackensack, N.J. The contract to purchase The Pierre is expected to close on
April 15, 2004. The contract purchase price of The Pierre is approximately $44
million. This amount, together with estimated transaction costs of approximately
$2 million, will result in total acquisition costs of approximately $46.0
million. The acquisition costs will be financed in part by a mortgage loan in
the approximate amount of $29.6 million and the balance in cash.
If the sale of OTC is completed, S and A intends to structure the sale of OTC
and the purchase of The Pierre in a manor that would qualify as a like kind
exchange of real estate pursuant to Section 1031 of the Internal Revenue Code,
and result in a deferral of the realization of gain on the sale of OTC.
Disclosure Concerning Forward-Looking Statements
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Certain Statements in this Form 8-K may contain information that is, or
anticipate certain events that are, forward-looking within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Registrant cautions readers
that forward-looking statements, including, without limitation, those relating
to the Registrant's liquidity and capital resources, are subject to certain
risks and uncertainties. Actual results may differ materially from those
described in the forward-looking statements and will be affected by a variety of
risks and factors, including without limitation, the Registrant's future
financial performance; the availability of capital; general market conditions;
national and local economic conditions; particularly long-term interest rates;
the terms of federal, state and local governmental regulations that affect the
Registrant; and the competitive environment in which the Registrant operates,
including the availability of retail space and residential apartment units in
the areas where the Registrant's properties are located. In addition, the
Registrant's continued qualification as a real estate investment trust involves
the application of highly technical and complex rules of the Internal Revenue
Code. The forward-looking statements are made as of the date of this Form 8-K
and the Registrant assumes no obligation to update the forward-looking
statements or to update the reasons actual results could differ from those
projected in such forward-looking statements.
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 hereto duly authorized.
FIRST REAL ESTATE INVESTMENT TRUST
OF NEW JERSEY
By: /s/ Robert S. Hekemian
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Robert S. Hekemian
Chairman of the Board
DATED: April 12, 2002