Nexia Subsidiary Embarks Upon Renovation of Historic Wallace-Bennet Building
Tuesday , June 29, 2004 09:30 ET
SALT LAKE CITY, Jun 29, 2004 (BUSINESS WIRE) -- Nexia's (OTCBB: NXIA) majority-owned subsidiary, Wasatch Capital Corp., began construction on the second floor of the Wallace Building, which consists of approximately 3,600 square feet. During 2002, Wasatch was able to complete renovations on the ground floor at a cost of $139,667.42, which is now at 100% occupancy. Subsequent to those renovations, Wasatch obtained an MAI appraisal valuing the property at $2.3 million as part of a refinancing transaction. The current book value is stated at $635,198 as of March 31, 2004. When the property was refinanced, $202,920 was set aside for renovations.
Phase one in renovating the property was the completion of the ground floor build out. Rental revenues were the sole source of funding to complete those renovations. Phase two in the renovation process has now begun on the second floor of the Wallace building. The original floor plan is being maintained as well as the original wood flooring to preserve the character and the historic mystique of the property. The build out of the 3,600 square feet is expected to cost about $200,000 to complete. All demolition work has been completed. The renovations will include all new electrical, plumbing, HVAC, windows, bathrooms, wall coverings, doors, lighting fixtures, and other improvements. The finished product will be a showpiece of Nexia's dedication to historic preservation and providing beautiful work facilities for its staff.
In an effort to stretch the construction loan as far as possible, Nexia is covering all of the labor costs through the issuance of shares and options under its 2004 benefit plan. The proceeds from the construction loan are being used solely to purchase materials. Nexia plans to retain the same contractor to complete the remaining renovations. The remaining three floors on the Bennet side of the building, which consists of 13,677 square feet, are next on the slate of planned renovations for Phase three.
Phase three plans are in process to build out the second floor of the Bennet side of the property which is 4,559 square feet. A tenant has been located to occupy the 4,559 square feet at a rate of $8 per square foot. Lease negotiations are in progress. The tenant will be responsible for the necessary renovations which will be offset against future lease payments. A new elevator is one of the anticipated renovations at an estimated cost of $80,000.
Phase four is in the planning stage and may entail converting the remaining floors into 10 to 14 apartment units. The unique architectural flair of the building will lend the apartments a very desirable marketing angle.
The historic Wallace-Bennet building is located in the heart of downtown Salt Lake City and is a 36,797 square foot, turn-of-the-century multi-story mixed-use building. The renovations, when completed, will improve the value and marketability of the property as well as offering a new opportunity for the public to interact with this well-recognized and much-loved landmark.
Nexia intends to move its corporate headquarters to the newly renovated space by Sept. 1, 2004.
A number of statements contained in this press release are forward-looking statements which are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, notwithstanding the fact that such act may not be available to Nexia. Forward-looking statements involve risk and uncertainty, and there can be no assurance that the results described in such statements will be realized. Such statements are based on current expectations and we undertake no obligation to publicly update or reissue any forward-looking statements. Risk factors that may cause the actual results to differ are described in various documents filed by the company with the U.S. Securities and Exchange Commission. Investors are strongly encouraged not to invest any monies which they cannot afford to lose. Additionally, Nexia strongly encourages the public to read the above information in conjunction with its Form 10-KSB for Dec. 31, 2003 and Form 10-QSB for March 31, 2004. Nexia's disclosures can be viewed at www.sec.gov.
SOURCE: Nexia Holdings Inc.
CONTACT: Nexia Holdings Inc., Salt Lake City
Richard Surber, 801-575-8073
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