FREIT Announces Settlement of Litigation with Sinatra Properties, LLC and Kushner Companies, LLC

HACKENSACK, New Jersey, June 26, 2024 /PRNewswire/ — First real estate investment trust New JerseyInc. (“FREIT”) is pleased to announce today that a settlement has been reached between FREIT and certain of its affiliates and Sinatra Properties, LLC and Kushner Companies, LLC, (the “Kushner Parties”) regarding a previously reported pending litigation. The litigation involved a dispute between the parties regarding a purchase and sale agreement entered into on January 14, 2020 (the “Purchase and Sale Agreement”).

The settlement agreement between the parties to the dispute provides for the payment of a total of $16.9 million by the Kushner Parties to FREIT and its affiliates, consisting of the communication to FREIT and its affiliates of $15.0 million deposit made by Sinatra Properties, LLC under the Purchase and Sale Agreement and an additional payment of $1.9 million by the Kushner parties at the latest July 262024. The $15.0 million the deposit was received by FREIT and its affiliates.

The settlement agreement provides for the customary mutual releases, dismissal of the dispute with prejudice and release of lis pendens which had been filed by Sinatra Properties, LLC against the properties subject to the Purchase and Sale Agreement. Although the settlement does not constitute an admission of liability by either party for any of the claims asserted in the litigation, it concludes a multi-year dispute between the parties.

__________________________________________________________________________________________________________

Statements in this report that address future earnings or performance are forward-looking. Actual results may differ materially and be adversely affected by factors such as market and economic conditions, longer-than-expected rental periods or the inability of certain tenants to pay rents. Additional information on these factors is contained in the Company’s filings with the SEC, including the Company’s most recent reports filed on Form 10-K and Form 10-Q.

First real estate investment trust New JerseyInc. is a publicly traded REIT (over-the-counter – symbol FREVS) established in 1961. Its portfolio of residential and commercial properties is located in New Jersey And new Yorkwith the greatest concentration in the north New Jersey.

For further information, contact Investor Relations at (201) 488-6400.

Visit us on the Web: www.freitnj.com

SOURCE First Real Estate Investment Trust New Jersey