ACRE Realty Investors Inc (NYSEMKT:AIII) conducts business through ACRE Realty LP, its operating partnership (the “Operating Partnership”). On October 7, 2016, the Operating Partnership, entered into a sales contract with Roberts Capital Partners, LLC, a Georgia limited liability company (the “Purchaser”), pursuant to which the Operating Partnership agreed to sell, and the Purchaser agreed to purchase, subject to the conditions in the contract, that certain parcel of approximately 37.693 acres of real property located in Cumming, Forsyth County, Georgia, fronting on State Route 20 (“Highway 20”). Charles S. Roberts, Executive Vice President and a director of the Company, owns, directly or indirectly, all of the outstanding stock of, and is the president and sole director of Roberts Capital Partners, LLC. Highway 20 is one of the legacy properties that was acquired prior to the recapitalization transaction with A-III Investment Partners LLC. As described in our most recent Annual Report on Form 10-K, Highway 20 is the only remaining legacy property that the Company has not sold.
Under the terms of the sales contract, the purchase price for Highway 20 is Three Million Six Hundred Seventy-Five Thousand and No/100 Dollars ($3,675,000). Purchaser paid an initial deposit of $30,000 following execution of the contract. Purchaser has 90 days from the execution date to inspect Highway 20 and elect whether to proceed with the purchase, at which time, if the Purchaser elects to proceed with the purchase of Highway 20, the initial deposit will become non-refundable and the Purchaser must pay an additional $50,000 non-refundable deposit.
If the Purchaser does not send a notice to the Operating Partnership electing to proceed with the purchase, or sends a notice to the Operating Partnership that Purchaser will not be sending a notice to proceed, on or before 90 days from the execution date, the condition precedent set forth in the sales contract with regards to inspection will be deemed unsatisfied and the initial deposit would be returned to the Purchaser and the sales contract would be terminated. If the Purchaser elects to proceed with the purchase upon expiration of the 90-day inspection period and the subsequent deposit is paid, the closing is expected to occur on or before 60 days after the expiration of the 90-day inspection period. The entire amount of the initial deposit and subsequent deposit will be applied to the total purchase price at closing. At closing, Purchaser will pay the Operating Partnership One Million Fifty Thousand and No/100 Dollars ($1,050,000) to reimburse Seller for all the prepaid sanitary sewer tap fees appurtenant to Highway 20, and the Operating Partnership will transfer and assign to Purchaser all of the Operating Partnership’s right, title and interest in and to such sanitary sewer tap fees.