Great Neck, New York, March 20, 2008 -- BRT Realty Trust (NYSE:BRT) reported today that it acquired by deed in lieu of foreclosure a 308 unit garden apartment complex located in Chattanooga, TN. The property, which secured a first mortgage loan with an outstanding principal balance of $25.7 million, was deeded to BRT by the borrower in accordance with the terms of a “walk-away guarantee” provided by the borrower’s principal.
Jeffrey Gould, President and Chief Executive Officer of BRT stated that the Chattanooga property is a quality residential property constructed in 2004, which, he believes will be an excellent opportunity for BRT. He also commented that “the walk-away guarantee provided BRT with the ability to take control of this property quickly and without the need to go through a costly foreclosure proceeding.”
BRT had announced, in a release issued on March 10, 2008, that it had orally committed to acquire the Chattanooga property. The release issued on March 10, 2008 also referenced four other loans aggregating approximately $36.7 million, secured by six multi-family garden apartment properties located in Tennessee and stated that BRT is temporarily forbearing from foreclosing on these six properties in order to allow a sale process for these six properties to proceed. BRT is receiving the operating cash flow from these six properties.
BRT is a New York-based Real Estate Investment Trust that specializes in the origination and holding for investment of senior and junior commercial mortgage loans secured by real property in the United States. For more information on BRT, please visit our Home Page.
Caution Concerning Forward-Looking Statements: Materials included in this filing may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words should be considered uncertain and forward-looking.
Contact: Simeon Brinberg, Senior Vice President - (516) 466-3100
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