Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Completion of Acquisition or Disposition of Assets

Pillarstone Capital REIT (OTCMKTS:PRLE) Files An 8-K Completion of Acquisition or Disposition of Assets
Item 2.01 Completion of Acquisition or Disposition of Assets.

On October 8, 2019, Pillarstone Capital REIT (the “Company”, “we”, “our” or “us”), through an indirect wholly owned subsidiary, Whitestone Industrial-Office, LLC, a Texas limited liability company, sold a portfolio of three properties in Houston, Texas consisting of Corporate Park West located at 1718 N. Fry Road, Plaza Park located at 7503 South Freeway, and Corporate Park Woodland located at 210-240 Spring Hill Drive (collectively, the “Portfolio”) to HMC Fuller Corporate Park West, LLC, HMC Fuller Plaza Park, LLC and HMC Fuller Corporate Park Woodland, LLC, respectively, (collectively, the “Buyer”) for $39.7 million in the aggregate (the “Disposition”). The Buyer is an unaffiliated third party. The Company does not have a material relationship with the Buyer, and the Disposition was not an affiliated transaction.
Net proceeds, after customary closing deductions, were used to pay $25.1 million of mortgage debt secured by the Portfolio and other properties, and after the Disposition, the Company paid the remaining $5.7 million balance of the Company’s $15.5 million loan from Whitestone REIT Operating Partnership, LP, a company affiliated with certain members of the Company’s management team and Board of Trustees.
Item 9.01 Financial Statements and Exhibits.
(b) Pro Forma Financial Information
Set forth in this Item 9.01(b) are the following unaudited pro forma consolidated financial statements illustrating the estimated effect of the Disposition described in Item 2.01 above as if the Disposition had previously occurred on the dates specified below:
Pillarstone Capital REIT and Subsidiaries
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
As of June 30, 2019
(a) Historical financial information derived from the Company’s Form 10-Q as of June 30, 2019.
(b) Unless otherwise noted, represents adjustments to reflect the disposition of the Portfolio. The sale price of the
>>>>>>>>>>>>>>>Portfolio was $39.7 million.
(c) Represents the reduction of debt from repaying $25.1 million of mortgage debt.
Pillarstone Capital REIT and Subsidiaries
NOTES TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2019
(a) Historical financial information derived from the Company’s Form 10-Q for the six months ended June 30, 2019.
(b) Unless otherwise noted, amounts represent the historical operations of the Portfolio as reflected in the historical
>>>>>>>>>>>>>>>statement of operations of the Company for the six months ended June 30, 2019.
(c) Represents the reduction of interest expense from repaying $25.1 million of mortgage debt.
Pillarstone Capital REIT and Subsidiaries
NOTES TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
For the Year Ended December 31, 2018
(a) Historical financial information derived from the Company’s Form 10-K ended December 31,2018. Expenses within
>>>>>>>>>>>>>>>categories have been reclassified for consistency in the Company’s Form 10-Q for June 30, 2019. The
>>>>>>>>>>>>>>>reclassifications had no effect on the reported results of operations.
(b) Unless otherwise noted, amounts represent the historical operations of the Portfolio as reflected in the historical
>>>>>>>>>>>>>>>statement of operations of the Company for the year ended December 31, 2018.
(c) Represents the reduction of interest expense from repaying $25.1 million of mortgage debt.
About Pillarstone Capital REIT (OTCMKTS:PRLE)

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Pillarstone Capital REIT, formerly Paragon Real Estate Equity and Investment Trust, is a shell company. The Company is a real estate investment trust (REIT). The Company focuses on maintaining its trust existence and Securities and Exchange Commission (SEC) reporting history to enable it in the future to raise additional capital and make real estate investments. The Company focuses on making real estate investments, which include acquisition and development of retail, office, office warehouse, industrial, multifamily, hotel, and other commercial properties; acquisition of or merger with a REIT or a real estate operating company, and joint venture investments. The Company focuses on investing its excess funds in marketable securities of other real estate companies. The Company has not generated any revenues.

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