Business
Regency Affiliates, Inc. Completes $35 Million Self-Storage Facility Acquisition
Regency Affiliates, Inc. Completes $35 Million Self-Storage Facility Acquisition.
About this update from Regency Affiliates, Inc.
[{"type":"text","content":"\n\n\n\nRegency Affiliates, Inc. Completes $35 Million Self-Storage Facility Acquisition\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nRegency Affiliates, Inc. Completes $35 Million Self-Storage Facility Acquisition\nPrivate Offering of Common Stock Remains Open\nPR Newswire\nNEW YORK, April 20, 2016\n\n\n\nNEW YORK, April 20, 2016 /PRNewswire/ -- Regency Affiliates, Inc. (OTC Pink: RAFI) (\"Regency\" or the \"Company\") today announced that it has completed the acquisition of a portfolio of five stand-alone self-storage facilities in the Harrisburg, Pennsylvania vicinity, for a total purchase price of $35,000,000. The facilities together comprise approximately 330,000 square feet of net rentable space consisting of in excess of 2,500 climate and non-climate controlled storage units. The website of the facilities is https://www.storagedepotpa.com/. The facilities will be managed on a day-to-day basis by a newly-engaged third party property management company which also holds a minority joint-venture investment in the facilities.  \n\nRevenues from the facilities are derived primarily from monthly rentals by individuals and additional revenues are earned from rentals to businesses, parking rentals, truck rentals, billboards and other administrative fees. Combined 2015 revenues for the facilities were in excess of $3,000,000. The projected first year cash return to Regency will be accretive to the Company's cash flow per common share and the cash flow from this investment is expected to largely be sheltered from income taxation for the foreseeable future.\n\nThe purchase price and the related transaction expenses were financed in part with the proceeds of a $25,250,000 non-recourse debt financing with a ten year term, 4.95% fixed interest rate and 30 year amortization commencing after a four year interest only period. The balance of the purchase price, the transaction expenses, and initial working capital, were financed by an approximate $11,231,000 capital contribution from Regency to the joint-venture purchaser.\n\nLaurence S. Levy, Regency's Chairman an...