On November 18, 1994, Regency Affiliates acquired a 50% economic partnership interest in Security Land and Development Company Limited Partnership. The Partnership owns a two-story office building and a connected six-story office tower occupied by the United States Social Security Administration Office of Disability and International Operations under a fifteen year lease expiring 2018. The office building has net rentable area of 717,000 square feet and is located on a 34.3 acre property in Woodlawn, MD. The significant terms of the lease include gross annual rent of approximately $12,754,000 with Security Land being responsible for the operating expenses of the building and for upgrading some of the building’s common areas.
On April 30, 2004, Regency through a newly formed, wholly-owned subsidiary called Regency Power Corporation, a Delaware corporation acquired a 50% membership interest in MESC Capital LLC, a Delaware limited liability company from DTE Mobile, LLC. MESC Capital was formed to acquire all of the membership interests in Mobile Energy Services Company, LLC. Mobile Energy owns an on-site energy facility that supplies steam and electricity to a Kimberly-Clark tissue mill in Mobile, Alabama. The facility’s operations are overseen by DTE Mobile, a unit of DTE Energy Company. The energy facility is located on approximately 11 acres within Kimberly-Clark’s facility and supplies up to 61 megawatts of regenerated steam and electricity for use in the mill’s operations.