Radiant Proves It Can Pay Its Way in Deal for First Union, Garage Profits Become Credit

NEW YORK CITY-As GlobeSt.com reported last month, First Union Real Estate Investments of New York executed a sales contract with Radiant Investors, LLC of Delaware for some of the properties of the company, as well as its subsidiaries. This sales contract has now been amended to reflect Radiant’s confirmation that it has obtained the required financing to make this acquisition. Radiant was set to pay about $200 million, but the agreement surrounding the Huntington Garage property has also been amended, impacting the bottom line.

Initially, it was reported that Radiant was going to pay the approximately $200 million with an additional $5 million funding the acquisition of a parking facility in a separate agreement. Now, First Union reports that it has signed a deal with New York-based Northeastern Security Development Corporation for a parking facility known as the Huntington Garage in Cleveland, Ohio. Northeastern will pay $21,250,000 for the garage and has already given a non-refundable deposit of $1 million. The deal is expected to close at the end of this January.

According to First Union, Radiant had originally agreed to acquire this property, seemingly the same parking facility for which Radiant was originally to pay $5 million. The sales contract has been amended so that Radiant will receive a credit toward its purchase price equal to the net profit by First Union. If the deal between Radiant and First Union is not completed at the end of that between Northeastern and First Union, the profit will become a post-closing credit.

First Union had reported originally that Radiant would assume responsibility for mortgages on particular properties. The total mortgage amount was listed at approximately $125 million at the time the sale was announced. This element of the deal remains unchanged.