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UNITED
STATES
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SECURITIES
AND EXCHANGE COMMISSION
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Washington,
D.C. 20549
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FORM
8-K
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CURRENT
REPORT
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PURSUANT
TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934
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Date
of Report (Date of earliest event reported): January 27,
2010
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Cole
Credit Property Trust III, Inc.
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(Exact
Name of Registrant as Specified in Its Charter)
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Maryland
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333-149290
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26-1846406
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(State
or other jurisdiction of incorporation or organization)
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(Commission
File Number)
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(I.R.S.
Employer Identification No.)
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2555
East Camelback Road, Suite 400, Phoenix, Arizona 85016
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(Address
of principal executive offices)
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(Zip
Code)
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(602)
778-8700
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(Registrant’s
telephone number, including area code)
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None
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(Former
name or former address, if changed since last
report)
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Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
1.01
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Entry
into a Material Definitive
Agreement
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On
January 27, 2010, Cole MT Austin TX, LLC (the “Borrower”) entered into a
mortgage loan agreement with Aviva Life and Annuity Company (“Aviva”), in the
principal amount of $34.3 million (the “Aviva Loan”). The Borrower is
a Delaware single-member limited liability company, wholly-owned by Cole REIT
III Operating Partnership, LP (“CCPT III OP”), the operating partnership of Cole
Credit Property Trust III, Inc. (the “Company”). The Aviva Loan is
collateralized by an approximately 342,000 square foot multi-tenant commercial
property owned by the Borrower located in Austin, Texas.
The Aviva
Loan bears interest at a fixed rate of 6.03% per annum and interest-only
payments are due monthly for the first five years of the loan term.
Thereafter, principal and interest payments are due monthly with any
remaining principal amounts due February 1, 2020.
The Aviva
Loan may be prepaid in whole, but not in part, on any scheduled payment
date upon 30-days prior written notice and the payment of a prepayment
premium. If the Aviva Loan is prepaid prior to February 1, 2018, the
prepayment premium is equal to (a) the greater of (i) 1% of the outstanding loan
balance or (ii) yield maintenance. If the Aviva Loan is prepaid after February
1, 2018 but prior to February 1, 2019, the prepayment premium is 2% of the
outstanding loan balance and if the Aviva Loan is prepaid on or after February
1, 2019, the prepayment premium is 1% of the outstanding loan
balance. The Aviva Loan is non-recourse to the Borrower and CCPT III
OP, but each is liable for customary non-recourse carve-outs.
Upon the
occurrence of an event of default, interest on the Aviva Loans will accrue at an
annual default interest rate equal to the lesser of 12% per annum or the highest
rate permitted by the applicable law governing the Aviva Loan and any
outstanding principal and interest would be payable on demand.
In
connection with the Aviva Loan, the Company paid its advisor, Cole REIT Advisors
III, LLC, a financing coordination fee equal to approximately
$343,000.
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Item 2.03
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Creation of a Direct Financial
Obligation or an Obligation under an Off-Balance Sheet Arrangement of a
Registrant.
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The
information set forth under Item 1.01 of this current report on Form 8-K is
hereby incorporated by reference into this Item 2.03.
1
SIGNATURE
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 thereunto
duly authorized.
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Dated:
January 29, 2010
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COLE
CREDIT PROPERTY TRUST III, INC.
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By:
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/s/
D. Kirk McAllaster, Jr.
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Name:
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D.
Kirk McAllaster, Jr.
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Title:
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Executive
Vice President and Chief Financial Officer
(Principal
Financial Officer)
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2