Item 8.01 Other Events
On February 7, 2018, Grande Rotunda, LLC, (a 60% owned affiliate of First Real
Estate Investment Trust of New Jersey) refinanced its $115.3 million
construction loan held by Wells Fargo with a new loan held by Aareal Capital
Corporation in the amount of $121.9 million. This refinancing paid off the loan
previously held by Wells Fargo, provides up to an additional $3.4 million for
retail tenant improvements and leasing costs and has funded loan closing costs.
This loan, secured by the Rotunda property, has an initial term of three years
with two one-year renewal options and bears a floating interest rate at 285
basis points over the one-month LIBOR rate. As part of this transaction, Grande
Rotunda, LLC purchased an interest rate cap on LIBOR, capping the one-month
LIBOR rate at 3%.
The statements in this report that relate to future earnings or performance are
forward-looking. Actual results might differ materially and be adversely
affected by such factors as longer than anticipated lease-up periods or the
inability of tenants to pay increased rents. Additional information about these
factors is contained in the Trust's filings with the SEC including the Trust's
most recently filed reports on Form 10-K and Form 10-Q.
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