Banyan will distribute between $4.60 and $4.80 per share to shareholders within 30 days. Banyan stock closed Thursday at $5.67 per share. The distributions will come from the $84 million left over after Banyan pays transaction costs of nearly $5 million and $93 million in debt.

The two parties are moving in opposite directions, as the acquisition is Denholtz's largest to date and increases its presence in Florida. The Banyan portfolio gives Denholtz nearly 8 million sf, concentrated heavily in New Jersey and Florida. Denholtz will expand its Tampa office as a result of the purchase.

"The Banyan acquisition is a perfect fit for us," says Denholtz Associates chief investment officer Stuart Green. "The portfolio is management intensive, with a diversified tenant base and is focused in top tier markets with excellent fundamental growth prospects. This portfolio also allows us to now grow in regions where we believe there is excellent upside potential."

Denholtz has the 184,738-sf University Square office building in Huntsville, AL under contract, with a closing scheduled in December. Denholtz also could pick up the 322,065-sf warehouse and distribution facility at 6901 Riverport Dr. in Louisville, KY and the 304,082-sf Northlake Festival Tower shopping center outside Atlanta.

"Absent extenuating circumstances, we anticipate the plan of liquidation will be completed before the end of 2002," says Banyan chairman L.G. Schafran, who also serves as interim CEO and president. "We remain on target for total liquidating distributions ofapproximately $6.00 per share."

CFC Advisory Services Limited Partnership, an affiliate of Chicago-based Cohen Financial, markets Banyan's assets. Arthur Andersen LLP acted as financial advisor to Denholtz.

Instant Insights /

Banyan, Denholtz Close $186-Mil Portfolio Sale

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