Owens Realty Mortgage Announces $75.5MM Closing of Treasures on the Bay

WALNUT CREEK, Calif., Sept. 15, 2016 — Owens Realty Mortgage, Inc. (NYSE MKT: ORM) (the “Company”) today announced that, on September 14, 2016, the Company closed the sale of the property (the “TOTB Property”) commonly known as the “Treasures on the Bay” to Interwest Capital Corporation (the “Buyer”) for $75.5 million. The TOTB Property includes the 169 condominium units and 160 apartment units and related land and assets which were held by TOTB Miami, LLC (“TOTB Miami”) and TOTB North, LLC (“TOTB North” and together with TOTB Miami “TOTB”). The Company owns an 80.74% interest in TOTB, and the Company’s manager, Owens Financial Group, Inc., is the owner of the other 19.26% interest in TOTB.

The sale resulted in extinguishment of approximately $32.9 million of debt and net sales proceeds of approximately $40.8 million ($32.9 million to the Company after noncontrolling interest). The gain on the sale of the TOTB Property was approximately $19.3 million (or $15.6 million to the Company after noncontrolling interest).

“We are very pleased to have completed the sale of these properties as it was one of our largest assets and provides capital to our lending operations.” said Bryan H. Draper, the Company’s Chief Executive Officer. “Although it has taken several years to realize the value in these properties, the sale resulted in a gain to the Company of approximately $15.6 million and added $1.52 per share to book value. More importantly, it provides the Company with $32.9 million in cash in addition to extinguishing substantial debt. We expect to reinvest and leverage these proceeds in the near term to expand our loan portfolio and increase earnings. Subsequent to this sale, we have decreased our real estate holdings from approximately 54% to approximately 39% of total assets.”

The foregoing description of the financial results of the sale does not purport to be complete and is qualified in its entirety by reference to the full text of the Unaudited Pro Forma Condensed Consolidated Financial Statements filed today by the Company with the SEC as an exhibit to a Current Report on Form 8-K.

About Owens Realty Mortgage, Inc.
Owens Realty Mortgage, Inc., a Maryland corporation, is a specialty finance mortgage company organized to qualify as a real estate investment trust (“REIT”) that focuses on the origination, investment, and management of small balance and middle-market commercial real estate loans. We provide customized, short-term acquisition and transition capital to commercial real estate investors that require speed and flexibility. Our primary objective is to provide investors with attractive current income and long-term shareholder value. Owens Realty Mortgage, Inc., is headquartered in Walnut Creek, California, and is externally managed and advised by Owens Financial Group, Inc.

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