Published:
Monmouth Real Estate Investment Corporation Announces Sale of Ramsey, New Jersey, Property
FREEHOLD, N.J., July 23 /PRNewswire-FirstCall/ -- Monmouth Real Estate
Investment Corporation (Nasdaq: MNRTA) (the "Company") announced the sale on
July 22, 2008, of its 44,719 square foot industrial property located at 565
East Crescent Avenue,Ramsey, New Jersey, to HSM Acquisition Partners, Inc., a
Delaware corporation and other related parties, for a selling price of
$4,050,000. The building, which is tenanted by Bogen Imaging, Inc., was
originally purchased by the Company in February of 1969 for $344,000. An
additional $1,070,000 was spent on the subsequent expansion of the property in
1984. The depreciated cost was approximately $461,000, and the gain on sale
to be reported in the year ending September 30, 2008, will be approximately
$3,500,000. The property was not subject to a mortgage and the cash proceeds
from this sale will be used for corporate purposes.
Eugene W. Landy, President, stated that, "This sale reflects the fact that
Monmouth Real Estate Investment Corporation, which has been in business for 40
years, has a substantial number of properties that have values considerably in
excess of the initial cost."
The decision to sell the property and the terms of the sale were
recommended by the Company's Business Judgment Committee, whose members
consist of independent directors. The Business Judgment Committee obtained an
independent appraisal of the property to assist in determining the contract
terms. The Company believes that the terms of the sale are comparable to what
the Company could have agreed to with an unrelated party. The purchaser is
not a totally unrelated party in that a one-third interest in the purchasing
group is owned by the President of the real estate advisor to the Company who
is also related to one of the Directors of the Company. The majority of the
purchasing entity is not a related party. No real estate commission was paid
on this transaction.
Monmouth Real Estate Investment Corporation is a publicly owned real
estate investment trust specializing in net-leased industrial property.
Effective with the sale of theRamsey property, Monmouth Real Estate
Investment Corporation's equity portfolio now consists of fifty-six industrial
properties and one shopping center located in twenty-five states. In
addition, the Company owns a portfolio of REIT securities.
SOURCE Monmouth Real Estate Investment Corporation
Copyright © 2009, PRNewswire
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