UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 
June 7, 2011
Date of Report (Date of earliest event reported)
CORNERSTONE REALTY FUND, LLC
(Exact name of registrant as specified in its charter)
         
California   000-51868   33-0827161
(State of Incorporation)   (Commission File Number)   (I.R.S. Employer
Identification Number)
1920 Main Street, Suite 400
Irvine, California 92614
(Address of principal executive offices)
(949) 852-1007
(Registrant’s telephone number, including area code)
Not Applicable
(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 obligations 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 240.14d-2(b)
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©
 
 

 


 

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
     On June 7, 2011, we, through a wholly-owned subsidiary, became obligated under a purchase and sale agreement (the “Agreement”) in connection with the sale of all the real estate properties of Cornerstone Realty Fund (the “Portfolio”), by Birtcher Anderson Realty, LLC (“Buyer”), a non-related party, for a purchase price of approximately $26.4 million. Except with respect to specific contingencies, the Buyer does not have the right to terminate the agreement without our consent.
     The material terms of the Agreement provide for: (i) an initial deposit from the Buyer in the amount of $500,000 that funded immediately upon execution of the Agreement and shall be credited to the purchase price of the property and is non-refundable except in limited circumstances; (ii) a property inspection period that expires thirty days after the execution date of the Agreement during which time the Buyer can terminate the Agreement at any time within the period by delivering written notice to us; (iii) a closing date for the sale of the property that shall occur on or before August 1, 2011. The Agreement also contains additional covenants, representations and warranties that are customary of real estate purchase and sale agreements.

 


 

SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  CORNERSTONE REALTY FUND, LLC
 
 
  By:   CORNERSTONE INDUSTRIAL PROPERTIES, LLC
Its Managing Member  
 
 
  By:   CORNERSTONE VENTURES, INC.
Its Manager  
 
 
  By:   /s/ Sharon C. Kaiser    
    Sharon C. Kaiser, Chief Financial Officer   
 
Dated: June 9, 2011