One Liberty Properties Inc . (NYSE:OLP), a real estate investment trust, has successfully concluded the sale of a vacant retail property in Kennesaw, Georgia. The transaction, completed on Thursday, resulted in a gross sales price of $6.7 million. The company utilized $4.4 million of the proceeds to retire the mortgage associated with the property. This strategic divestiture is expected to yield an approximate gain of $2.1 million for the quarter ending June 30, 2024.
The property, which was vacant at the time of sale, had contributed $111,000 in rental income in 2023. The associated operating costs for the same year included $80,000 in real estate operating expenses, $173,000 in mortgage interest, and $240,000 in depreciation and amortization expenses.
This recent move by One Liberty Properties marks a notable transaction for the company, as it continues to manage its portfolio of real estate assets. The sale's completion aligns with the forecast provided in the company's Quarterly Report for the period ending March 31, 2024, which projected the property's disposal by the end of June.
Investors and stakeholders of One Liberty Properties may view this development as a positive step towards optimizing the company's asset base and improving its financial position. The gain from the sale is poised to reflect positively in the company's financial results for the second quarter of 2024.
In other recent news, One Liberty Properties Inc. has announced several transactions involving industrial and retail properties. The company has disclosed its plan to acquire a newly constructed 302,000-square-foot industrial building near Omaha, Nebraska for $33 million, with a closing date expected by the end of September. The building houses several tenants, one of which is a NYSE-listed company with an investment-grade BBB rating from S&P.
In addition, One Liberty recently completed the acquisition of a 35,249-square-foot industrial facility in Savannah, Georgia for $5.2 million. This property is fully leased to Russell Equipment, Inc. through 2034. The company also reported sales of various properties totaling $16.32 million in gross sales price and $5.38 million in net gains.
Significant leasing activities were also highlighted with a renegotiated lease with Fitness International, LLC for a property in Secaucus, New Jersey, extending it through 2040 and increasing annual rent. However, challenges have arisen with an LA Fitness facility in Hamilton, Ohio, leading One Liberty to enter into a non-binding letter of intent to sell the property for $4.4 million. These are the recent developments for One Liberty Properties.
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