Gyrodyne to sell land in New York as part of liquidation plan

Gyrodyne (GYRO), an owner and manager of a diversified portfolio of real estate properties, announced that its subsidiary, GSD Flowerfield, has entered into a purchase and sale agreement for the sale of approximately 49 acres of vacant land located within the company’s Flowerfield complex in St. James, New York to B2K Smithtown LLC. The agreement sets a purchase price range of $24M to $28.74M, with the final amount subject to certain conditions and contingencies, and based on current information, the company estimates the final price to be $28.74M. As a result of the agreement and associated assumptions, including anticipated site plan approval and additional projected costs incurred in connection with the revised liquidation timeline, the company currently estimates its net asset value in liquidation as of June 30, to be approximately $32.6M, with an estimated NAV per share of $14.83, an increase in NAV of $1.8M or 84c per share. This represents an approximate 6% increase over the NAV reported in the first quarter 10-Q of $30.8M or $14.01 per share. “This agreement marks a significant milestone in the execution of our strategic plan. We believe this transaction aligns with our commitment to maximize value for our shareholders. The transaction may also enhance the marketability and value of our adjacent industrial park at Flowerfield, and the proposed development will bring long-term value to the Smithtown community. As we evaluated potential uses for the property, it became clear that there is a meaningful need for assisted living facilities in the region, which also has a low traffic impact to the community. In our discussions with B2K Development, we agreed on the importance of aligning with community values, and we are pleased that their proposed development will preserve over 40% of the property as open space,” said Gary Fitlin, Chief Executive Officer of Gyrodyne.