Completion of Purchase of a 263 Unit Apartment Complex and related Debt Financing

Completion of Purchase of a 263 Unit Apartment Complex

On November 1, 2012, Tower Properties Company and subsidiaries (Company) completed the purchase of a 263 unit apartment complex in Shawnee, Kansas pursuant to the Real Estate Contract entered into on June 19, 2012, as reported on a news release to OTC Markets on June 21, 2012.  The purchase price was $25,475,000.  This purchase was the final step of a Sec. 1031 like-kind exchange.  The first step of the 1031 like-kind exchange was the October 30, 2012 sale of five surface parking lots (600 Baltimore, 700 Baltimore, 600 Main, 601 Main, and 102 E.8^th Street) for $7,200,000, where, after payment of associated closing expenses, $7,048,568.81 was paid in cash to an intermediary.  That cash with the intermediary was utilized in the purchase of this apartment complex.

Debt Financing

On November 1, 2012, the Company obtained $17,800,000 of financing for the 263 unit apartment complex in Shawnee, Kansas.  The new loan of $17,800,000 is a 10-year non-recourse loan (25 year amortization) at 3.5% that matures on November 1, 2022.