OWENS REALTY MORTGAGE, INC. (NYSEMKT:ORM) Files An 8-K Completion of Acquisition or Disposition of Assets


OWENS REALTY MORTGAGE, INC. (NYSEMKT:ORM) Files An 8-K Completion of Acquisition or Disposition of Assets

Item 2.01 Completion of Acquisition or Disposition of Assets

As previously reported, on September 22, 2016, Tahoe Stateline
Venture, LLC, a California limited liability company (“TSV”)
that is wholly-owned by Owens Realty Mortgage, Inc. (the
“Company”), entered into a Land and Entitlement Purchase
Agreement (as amended by Addendum 2 dated November 18, 2016, the
“Purchase Agreement”) with Jianping Pan, Kawana Holdings LLC
which assigned its rights under the Purchase Agreement to Tahoe
Chateau Land Holding, LLC, a California limited liability company
(the “Buyer”). to the Purchase Agreement, TSV agreed to sell to
Buyer the approximately 8.0 acres of land and entitlements,
including related parking and garage structures, owned by TSV in
South Lake Tahoe, California, commonly known as The Chateau at
the Village as further described in the Purchase Agreement (the
“Property”) for a total of $45.5 million or $42.5 million net
of a $3.0 million seller’s credit which includes sales
commissions (the “Purchase Price”). The Property sold does not
include the existing retail buildings and improvements.
The sale of the Property closed on April 18, 2017 and the Company
received net proceeds of approximately $42.3 million. The gain on
the sale of the Property was approximately $13.2 million.
The Purchase Agreement is attached as an exhibit to a Form 8-K
filed with the SEC on September 27, 2016, and Addendum 2 is
described in a Form 8-K filed with the SEC on November 29, 2016.
The Purchase Agreement and the press release announcing the
closing of the Property sale, attached hereto as Exhibit 99.1,
are incorporated herein by reference.
Forward-Looking Statements
This Current Report (including information included or
incorporated by reference herein) contains “forward-looking
statements” within the meaning of the safe harbor provisions of
the United States Private Securities Litigation Reform Act of
1995. Forward-looking statements about the Company’s plans,
strategies, prospects, and anticipated events, including the
transactions or other items discussed in this Current Report, are
based on current information, estimates, and projections; they
are subject to risks and uncertainties, as well as known and
unknown risks, which could cause actual results to differ from
expectations, estimates and projections and, consequently,
readers should not rely on these forward-looking statements as
predictions of future events. Words such as “expect,”
“target,” “assume,” “estimate,” “project,” “budget,”
“forecast,” “anticipate,” “intend,” “plan,” “may,”
“will,” “could,” “should,” “believe,” “predicts,”
“potential,” “continue,” and similar expressions are intended
to identify such forward-looking statements.
Readers are cautioned not to place undue reliance upon any
forward-looking statements, which speak only as of the date made.
The Company does not undertake or accept any obligation to
release publicly any updates or revisions to any forward-looking
statement to reflect any change in its expectations or any change
in events, conditions or circumstances on which any such
statement is based. Additional information concerning these and
other risk factors is contained in the Company’s most recent
filings with the Securities and Exchange Commission including
those appearing under the heading “Item 1A. Risk Factors” in
the Company’s most recent Annual Report on Form 10-K and each
subsequent Quarterly Report on Form 10-Q. All subsequent written
and oral forward-looking statements concerning the Company or
matters attributable to the Company or any person acting on its
behalf are expressly qualified in their entirety by the
cautionary statements above.
Item 9.01 Financial Statements and Exhibits
Pro Forma Financial Information
Certain pro forma financial information is attached hereto as
Exhibit 99.2
Exhibit No.
Press Release dated April 20, 2017
Unaudited Pro Forma Condensed Consolidated Financial
Statements of Owens Realty Mortgage, Inc.


Owens Realty Mortgage, Inc. is a specialty finance company that focuses on the origination, investment and management of commercial real estate loans, primarily in the Western United States. The Company’s segments include commercial real estate, residential real estate and land loans. The Company provides short-term loans to small and middle-market investors and developers that require speed and flexibility. The Company also holds investments in real estate property. The Company is managed and advised by Owens Financial Group, Inc. (OFG), a specialized commercial real estate management company. OFG arranges, services and maintains the loan and real estate portfolios for the Company. Its principal investment objectives are to preserve the capital of the Company and to provide periodic cash distributions to stockholders. Its acquisition and investment policies are to invest approximately 86.5% of its capital in real estate loans and activities related thereto.


OWENS REALTY MORTGAGE, INC. (NYSEMKT:ORM) closed its last trading session up +0.05 at 17.64 with 10,632 shares trading hands.

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