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MENLO PARK, CA-Meredith Enterprises said this week it has entered into a contract to sell another of its vacant light industrial properties, and more vacant buildings appear to be on the small REIT’s horizon, according to recent SEC filings.

Locally based Meredith, formerly West Coast Realty Investors, listed seven properties for sale at the beginning of August. On Aug. 13, it sold a vacant 66,000-sf light industrial property in Vacaville, CA for $2.1 million. The property, which at one time generated 8% of the company’s gross rental income, has been largely vacant since August 2001, and completely vacant since October 2002. Meredith said at the time of the sale it expected to recognize a gain on the sale of approximately $400,000, but only because it wrote down the value of the property by about $1.5 million in 2001. It purchased the property in 1998 for $2.7 million in 1998.

The building it’s going to sell in Chino is a 38,554-sf light industrial building that was triple-net leased to Daedo American Corporation through April of this year and as of August still owed $90,000 in rent for the first quarter of 2003. The contracted sale price is $2.3 million. At the beginning of the year, the company listed its total cost associated with the property at about $1.85 million.

Now it appears two more buildings in its 15-property, 800,000-sf portfolio could be headed toward empty. The company filed a report with the SEC in early August that said it expects its financial results to be affected by two properties that house tenants involved in bankruptcies. One of those properties, a 40,000-sf light industrial building in Ontario, CA, is occupied by a subsidiary of Adelphia Communications, which has declared bankruptcy. The tenant’s lease, which runs into 2013, had been paid through the end of August, according to the filing. The other property, an 8,900-sf retail property in Fresno, is leased in part through 2008 by Wherehouse Entertainment Inc., which declared bankruptcy in January. In that case as well, the rent had been paid through Aug. 31.

Until 2002, the company’s business focus was the ownership and operation of suburban office properties and light industrial buildings. Since that time the company has broadened its focus to include large shopping centers and properties outside of California, and has also begun to develop and construct its own properties.

At June 30, 2003, the company had a real estate portfolio of 15 properties totaling about 900,000 sf, including five light industrial properties (238,130 sf), one shopping center (321,621sf), three suburban office properties (94,806 sf), six properties held for sale (124,848 sf) and one parcel of land held for future development. All but one of those properties, the shopping center, is located in California, and most leases are on a triple-net basis.

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