UNITED STATES
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 (Date of earliest event reported): August 31, 2011
EXCELSIOR LASALLE PROPERTY FUND, INC.
(Exact name of registrant as specified in its charter)
Maryland | 000-51948 | 20-1432284 | ||
(State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
225 High Ridge Road, Stamford, CT, |
06905-3039 | |
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (203) 352-4400
N/A |
(Former name or former address if changed since last report.) |
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))
Item 8.01. Other Events.
On August 31, 2011, Excelsior LaSalle Property Fund, Inc. (the Fund) entered into a two-year loan extension on the $35.2 million mortgage loan collateralized by Monument IV at Worldgate. The mortgage loan now matures on September 1, 2013, but, subject to certain conditions, can be extended at the Funds option for an additional year. The loan continues to bear interest at 5.29% and is interest-only throughout the extension. At closing, the Fund contributed $3.3 million in cash reserves to the lender, funded from cash on hand, to be used for future leasing costs and debt service. This additional contribution brings accumulated cash reserves to $5.7 million for future re-tenanting and debt service. Pursuant to the loan extension, the Fund will be required to escrow additional cash reserves of $550,000, quarterly. All escrows can be used to pay for re-tenanting costs or cover debt service shortfalls in the future. The Fund can prepay the loan, at par, with 30 days notice.
As of this filing, the single tenant of the building, Fannie Mae, has not renewed its lease, though negotiations are ongoing with Fannie Mae regarding its occupancy in Monument IV at Worldgate after the lease expiration. Fannie Maes lease expires on December 31, 2011. LaSalle Investment Management, Inc., the Funds advisor, considers the successful execution of this loan extension to be a critical accomplishment, as it will allow the Fund the opportunity to participate in creating value through the re-tenanting of the property. While the outcome of this strategy can not be predicted at this time, preliminary feedback and interest from prospective tenants appears positive. The property is located in the steadily recovering Washington, D.C. submarket of Herndon, VA, directly visible from the Dulles Toll Road.
Cautionary Note Regarding Forward-Looking Statements
This report may contain forward-looking statements, regarding, among other things, the Funds ability to renew the loan extension and create value through re-tenanting Monument IV at Worldgate. Forward-looking statements include, but are not limited to, statements that represent the Funds beliefs concerning future operations, strategies, financial results or other developments. Forward-looking statements can be identified by the use of forward-looking terminology such as, but not limited to, may, should, expect, anticipate, estimate, would be, believe, or continue or the negative or other variations of comparable terminology. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond the Funds control or are subject to change, actual results could be materially different. Although the Fund believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, it cannot guarantee that it will achieve or realize these plans, intentions or expectations. Factors that could cause the Fund not to realize its plans, intentions or expectations include, but are not limited to, those discussed under the headings Managements Discussion and Analysis of Financial Condition and Results of Operations and Risk Factors contained in the Funds Annual Report on Form 10-K for the year ended December 31, 2010 and the Funds Quarterly Reports on Form 10-Q filed with the SEC, including risks related to: (i) the current global financial crisis; (ii) risks related to student-oriented apartment communities; (iii) commercial real estate ownership; (iv) competition for attractive investments; (v) performance of the Funds Manager and the Funds Advisor; (vi) the Funds ability to use leverage; (viii) the loss of key personnel by the Funds Manager or the Funds Advisor; (vii) compliance with the Securities Exchange Act of 1934, as amended; (ix) the Funds failure to achieve its return objectives; (x) the impact of co-tenancy provisions; (xi) defaults by significant tenants; (xii) compliance with environmental laws; (xiii) the possible development of harmful mold at the Funds properties; (xiv) the Funds ability to sell Shares and the illiquidity of its Shares; (xv) terrorist attacks; (xvi) the adequacy of the Funds insurance; (xvii) the extent to which the Funds investments are diversified; (xviii) the Funds joint investments with third parties; (xix) the structure of the fees payable to the Funds Manager and the Funds Advisor; (xx) the Funds qualification as a venture capital operating company under ERISA; (xxi) the Funds ability to remain exempt from the registration requirements of the Investment Company Act; (xxii) ownership limitations in the Funds charter; (xxiii) the Funds ability to pay dividends; and (xxiv) the Funds ability to qualify as a REIT. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date this Schedule Form 8-K. Except as required by law, the Fund does not undertake any obligation to update or revise any forward-looking statements contained in this Schedule Form 8-K.
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 hereunto duly authorized.
EXCELSIOR LASALLE PROPERTY FUND, INC. | ||
(Registrant) By: /s/ James D. Bowden |
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Name: James D. Bowden Title: Chief Executive Officer |
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Date: September 1, 2011
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