AmBase Corporation -- Announces The 111 West 57th Street Real Estate Development Project Obtains Construction Financing

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Jun 30, 2015, 06:17 ET

BOCA RATON, Fla., June 30, 2015 /PRNewswire/ -- AmBase Corporation ("AmBase" or the "Company") (OTC: ABCP) announced, that 111 West 57th Partners LLC ("Partners LLC") obtained $725 million of financing for the 111 West 57^th Street Real Estate Development Project. The financing was obtained in two (2) parts; (i) a first mortgage construction loan with AIG Asset Management (US), LLC, ("AIG") and (ii) a mezzanine loan with Apollo Commercial Real Estate Finance, Inc., ("Apollo"). 111 West 57th Investment LLC ("Investment LLC"), a subsidiary of the Company, holds a membership interest in Partners LLC, which indirectly acquired the real property located at 105 through 111 West 57th Street in New York, New York. Both loans have a four year term with a one year extension option. The loan agreements also include customary events of default and other customary terms and conditions.

Simultaneously with the closing of the AIG and the Apollo financing, Partners LLC repaid approximately $230 million in full satisfaction of all outstanding liabilities and obligations to Annaly CRE, LLC under the mortgage and acquisition loan agreement, dated June 28, 2013, between Partners LLC and Annaly CRE, LLC. Partners LLC intends to use the remaining loan proceeds for construction and related costs, loan interest escrow and other related project expenses.

Statements made in this press release may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted or quantified. Forward-looking statements can be identified by such words as "estimates," "expects," "anticipates," "believes," "plans," "intends" and variations of such words and similar expressions. The Company cautions readers that a variety of factors could cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. These risks and uncertainties, many of which are beyond the Company's control, include, but are not limited to those set forth under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's Annual Reports on Form 10-K, as may be supplemented or amended by the Company's Quarterly Reports on Form 10-Q, which are incorporated herein by reference. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.

SOURCE AmBase Corporation