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GREAT NECK, NY-Locally based One Liberty Properties has entered into three contracts to sell 10 movie theatre properties for an aggregate of approximately $178 million. Entities wholly-owned by two joint ventures of OLP agreed to sell to a single buyer eight properties, while a wholly-owned subsidiary of OLP will sell to the same buyer one property.

The aggregate consideration of those transactions is $161.8 million. Approximately $146.7 million has been allocated to the eight properties and approximately $15.2 million has been allocated to the other site.

According to an SEC filing on the contracts, ECM Diversified Income & Growth Fund LLC is the purchaser. The joint ventures are identified as OLP Chula Vista Corp.; OLP Norwalk LLC; OLP Austell, LLC; OLP Beavercreek LLC; OLP Southlake, LLC; OLP Roanoke LLC; OLP Lubbock Venture LP; OLP Live Oak LP and OLP Henrietta LLC. Currently the aggregate annual rent under the leases applicable to the eight properties is $10.4 million, and the annual rent under the lease for the other site is $1.1 million.

In the other transaction, HID Acquisition Group LLC has agreed to acquire 187-191 Prospect Park West, aka, Brooklyn Pavilion for approximately $16 million. The annual rent under the property's lease is currently $1.1 million.

OLP says some or all of its proceeds may be deferred for income tax purposes by entering into one or more tax-deferred exchanges. One Liberty is a REIT that specializes in the acquisition and ownership of a long-term net leased portfolio.

The buyer of the nine properties has a 35-day due diligence period in which is may, in its sole discretion, terminate the contract. The closings, which are subject to customary terms and conditions, are expected within 75 days.

Instant Insights /

One Liberty Sells Theaters for $178M

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