Question-and-Answer Session
Operator
We'll now open up the conference call for questions. (Operator Instructions). Your first question comes from Jordan Sadler – Keybanc Capital Markets.
Jordan Sadler – Keybanc Capital Markets
Just wanted to get some additional color on the asset sales and the expected impact on the burn rate, so maybe just in two parts, one, how big do you think these asset sales will be in terms of net proceeds back to the company above the debt? And then ultimately how did the sale of these assets affect the burn rate?
Nelson C. Rising
Well, on your first question, since these sales are in process, in one case under contract, the other case under negotiations, we are not prepared to discuss price. I will say that with respect to the two sales, one under contract, 3161, and the other Lantana, we do believe that those sales will deal with the maturities on the loans on those two respective properties.
Now, with respect to the burn rate, obviously the reduction of the ongoing cost of carrying 3161 will be helpful. I don't have a precise number for you on that because it depends on the actual closings.
Jordan Sadler – Keybanc Capital Markets
OK. What was the burn rate during the quarter?
Nelson C. Rising
Shant, will you address that?
Shant Koumriqian
If you look at 3161 alone, we do have mass release payments that we're currently making that do get trapped and are amortized against the loan. We had a $3.4 million pay down during the quarter, so that will give you an indication of the cash requirement to pay down that loan. And that will continue as long as those master lease obligations are in place, that will continue for the foreseeable future, until you lease up the project and hit certain coverage ratios. So at least from a principal pay down perspective, the current quarter hit was $3.5 million on that project. So that will give you an indication of burn.
Operator
Your next question comes from John Guinee – Stifel.
John Guinee – Stifel Nicolaus & Company
Thanks. First, the additional $23.5 million impairment on 3161 Michelson, is that essentially safe to say that was just a haircut in the last 60 or 90 days?
Nelson C. Rising
No, not exactly. What transpired was when we took the impairment in the fourth quarter of 2008 we were estimating what the sales price would be, and the costs associated with that and the additional 23 reflects, now, the transaction that we are in the process of trying to close.
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