DALLAS--(BUSINESS WIRE)--Add "Forward-Looking Statements" after first paragraph of release issued February 27, 2015 at 2:49 p.m. ET.
The corrected release reads:
CIM Commercial Trust Corporation Statement
In May 2011, CIM purchased a loan on 47 E. 34th Street, a multi-family residential building developed under the 421-a program, which offers tax benefits for housing developments. At the time, a master lease for the residential portion of building was already in place with BridgeStreet Corporate Housing, a corporate-housing provider. In late 2011, CIM took control of the property through foreclosure and negotiated a new lease with BridgeStreet in early 2012, with provisions that CIM believed would allow the building to be operated in compliance with the terms of the 421-a program. In 2014 CIM was alerted by the New York Attorney General (“NYAG”) that the building’s current use might not be compliant with the 421-a program. CIM engaged with the NYAG's office and commenced an in-depth analysis of the issues the NYAG's office brought to our attention. Although there were a number of complex issues involved, we concluded that the NYAG's position was the more correct view of 421-a program, and CIM concluded it was not entitled to the 421-a benefits it had received since it took ownership of the properties. Once CIM reached this determination we moved to quickly rectify the situation by agreeing to a settlement, which included (i) an agreement to terminate the lease with BridgeStreet, effective March 11, 2015, (ii) repayment of the benefits we had previously received, and (iii) making a payment to reimburse expenses the NYAG's office incurred through this process. We appreciate the hard work of the NYAG's office on this matter and we are pleased that with this resolution the building can continue as a participant of the 421-a program. Effective March 11, 2015, CIM will be directly operating and managing the property and leasing the units as rent-stabilized apartments, thus adding more affordable housing in Manhattan.
The information set forth herein contains "forward-looking statements." You can identify these statements by the fact that they do not relate strictly to historical or current facts or discuss the business and affairs of CIM Commercial Trust Corporation on a prospective basis. Further, statements that include words such as "may," "will," "project," "might," "expect," "believe," "anticipate," "intend," "could," "would," "estimate," "continue" "pursue," or "should" or the negative or other words or expressions of similar meaning, may identify forward-looking statements.
CIM Commercial Trust bases these forward-looking statements on particular assumptions that it has made in light of its experience, as well as its perception of expected future developments and other factors that it believes are appropriate under the circumstances. The forward-looking statements are necessarily estimates reflecting the judgment of CIM Commercial Trust and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors, including those set forth in the definitive proxy statement / prospectus of PMC Commercial Trust dated December 30, 2013 under the heading "Risk Factors", the supplement to proxy statement/prospectus of PMC Commercial Trust dated January 31, 2014 under the heading "Update to Risk Factors" and other risks detailed in PMC Commercial Trust's filings with the SEC, including but not limited to PMC Commercial Trust's Annual Report on Form 10-K for the fiscal year ended December 31, 2013.
As you read and consider the information herein, you are cautioned to not place undue reliance on these forward-looking statements. These statements are not guarantees of performance or results and speak only as of the date hereof. These forward-looking statements involve risks, uncertainties and assumptions. In light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking statements contained herein will in fact transpire. New factors emerge from time to time, and it is not possible for CIM Commercial Trust to predict all of them. Nor can CIM Commercial Trust assess the impact of each such factor or the extent to which any factor, or combination of factors may cause results to differ materially from those contained in any forward-looking statement. CIM Commercial Trust undertakes no obligation to publicly update or release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.