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8-K - LIVE FILING - T REIT LIQUIDATING TRUST | htm_41118.htm |
March 18, 2011
Dear T REIT Liquidating Trust Beneficiary:
I write in regards to your beneficial interest in T REIT Liquidating Trust and to provide you with an update on the performance of the trusts sole remaining asset, Congress Center, located in Chicago, Illinois.
As you know, pursuant to our plan of liquidation the top priorities of T REIT Liquidating Trust are to dispose of its 10.3 percent ownership interest in Congress Center, distribute all available proceeds to our beneficiaries, and to wind up operations. As indicated in our letter to you on November 22, 2010, we expect to sell our interest in the Congress Center property by the end of 2012. Following the sale of Congress Center, we will proceed with the final liquidation of T REIT Liquidating Trust.
Until we are able to accomplish a sale of our interest in Congress Center, we are committed to managing the property to maintain or improve its value while maximizing cash flow from its operations. As I reported to you previously, our strategy to increase the potential value of the property by aggressively marketing rentable space and extending and renewing existing tenant leases has been met with marked success.
| In May 2009, we entered into a lease agreement for approximately 28,000 square feet of space that will be occupied by the Internal Revenue Service. The lease is for a period of 10 years (seven years firm), and occupancy is expected to commence in the second quarter of 2011. |
| In January 2010, we executed a lease extension with one of the propertys largest tenants, AKZO Nobel, which occupies 91,000 square feet at Congress Center. The six-year lease extension ties this attractive tenant to the property through at least 2019, adding valuable stability to the rent roll. |
| In June 2010, we executed a lease for approximately 44,000 square feet of previously vacant space that will be occupied by the U.S. Department of Justice. This lease is for a period of 10 years (five years firm). We anticipate that the Department of Justice will occupy the space in the third quarter of 2011. This lease delivers another credit-worthy tenant for an extended period to Congress Center. |
| In October 2010, we completed a nearly 42,000-square-foot lease renewal with North American Company for Life and Health Insurance, helping to maintain the highest occupancy rate the property has achieved since it was delivered to the market in 2001. |
| Most recently, we secured an additional 6,000 square feet of space with the Department of Justice. The agency originally signed a 44,000-square-foot lease, but in the course of designing its space plan, expanded its 10-year lease to occupy a total of 50,000 square feet. |
| During the past 18 months, we have executed or extended leases totaling more than 216,000 square feet of space with highly attractive credit-worthy tenants. |
| Once the Internal Revenue Service and Department of Justice commence occupancy, Congress Centers occupancy rate will be at 95 percent, which far outperforms the occupancy of the surrounding sub-market of only 82.6 percent. |
We will continue to aggressively pursue our leasing efforts in order to maximize cash flow and property value to achieve the most valuable possible sale of our ownership interest in Congress Center. We will also continue to share regular updates with you regarding the property and its ongoing operations.
Should you have any questions or require additional information, an investor services representative is available to assist you at (877) 888-7348.
Kind regards,
W. Brand Inlow
Trustee
FORWARD-LOOKING STATEMENTS:
This letter contains certain forward-looking statements (under Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) with respect
to T REIT Liquidating Trust being able to dispose of its remaining property interest and complete
the plan of liquidation within the anticipated timeframe, its ability to pay future cash
distributions to its beneficiaries, its ability to continue to lease unoccupied space or negotiate
extension or renewal leases with current tenants and its whether its currently leasing strategy
will maximize cash flow and increase the propertys value. Because such statements include risks,
uncertainties and contingencies, actual results may differ materially from those expressed or
implied by such forward-looking statements. These risks, uncertainties and contingencies include,
but are not limited to, the following: our ability to successfully market for sale our remaining
property interest, our ability to generate proceeds from the sale of our property interest to pay
cash distributions to our beneficiaries, the effect of the economic recession on commercial real
estate, the effect of the constrained credit market on potential buyers of our properties and other
risk factors as outlined in T REIT, Inc.s plan of liquidation contained within its definitive
proxy statement filed June 15, 2005, and as further detailed from time to time in our periodic
reports, as filed with the U.S. Securities and Exchange Commission. Forward-looking statements in
this letter speak only as of the date on which such statements were made, and we undertake no
obligation to update any such statements that may become untrue because of subsequent events. We
claim the safe harbor protection for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995.