Trinity inity place holdings inc announces joint venture with tf cornerstone group llc

On december 3, 2019, trinity place holdings inc. announced that a joint venture between the company and tf cornerstone group llc has signed a contract to acquire 250 north 10th street. the property is a 96% leased, market-leading 234-unit apartment building in williamsburg, brooklyn located one block from the berkley, another property owned by a joint venture in which the company has an interest. the purchase price for the property is $137.75 million, or $588,675 per unit. subject to customary closing conditions, the purchase is expected to close within 60 days and to be financed by a fixed-rate loan. the joint venture made a $4 million earnest money deposit upon execution of the contract. the joint venture is between a wholly-owned subsidiary of the company and an affiliate of tfc. the company indirectly owns a 10% interest, tfc indirectly owns a 90% interest and both are co-managing members. tfc will lend the company its share of the equity to purchase the property at an interest rate of 7% per annum, maturing in four years. the company may prepay the loan, which is recourse only to the company’s indirect interest in the property, in whole or in part at any time without premium, fee or penalty. prior to repayment of the loan, tfc may convert the loan into common stock of the company at a price of $6.50 per share, if the company’s stock trades at a 30-day volume-weighted average price per share of $6.50 or greater; subject to a $6.3 million cap on the loan amount that may be converted if the conversion occurs prior to or concurrently with the closing of the acquisition loan for the property. the company will receive an acquisition fee at the closing of the purchase, an annual asset management fee and a performance-based promote. tfc will provide property management services to the ownership entity.
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