Deal Of The Week (12/23)
Dec 23, 2008 11:27 AM
Phillips Edison & Company purchased Silver State Plaza, a 155,647-square-foot shopping center in Reno, Nev., from PacTrust for $14.7 million. The purchase price includes 35 percent equity and 65 percent in debt through a credit facility secured by the portfolio of PECO Fund IV, a Phillips Edison investment vehicle that is structured as a private REIT, according to George Garvin, acquisitions officer for the Western states with Phillips Edison.
While the property was in escrow, the center’s anchor, Mervyns department store, filed for bankruptcy and announced it would move out of its 52,800-square-foot space. The Mervyns’ lease had only a short amount of time remaining on it, so Phillips Edison went ahead with the transaction, according to Garvin. Phillips Edison is currently in negotiations with another retailer to take half of Mervyns’ former space.
“They had only three years on their lease and we were planning to replace them three years later, so their declaration of bankruptcy just moved that sooner,” says Garvin. “And we had allocated funds for tenant improvements for the right tenant to either take half or all of their space.”
Other retailers at Silver State Plaza include Fresh & Easy Neighborhood Market, Dollar Tree and Big 5.
Other Notable Deals
The Macerich Co. closed a $250 million loan on Washington Square Mall, a 1.5-million-square-foot property in Portland, Ore. The loan featured a fixed 6.00 percent rate and a seven-year term. The transaction generated proceeds above the prior $63 million loan on the property… Ramco-Gershenson Properties Trust paid off a $40 million term loan due to mature in March 2009. The loan was secured by three properties: the 304,224-square-foot Northwest Crossing in Knoxville, Tenn., the 211,524-square-foot Ridgeview Crossing in Elkin, N.C. and the 241,232-square-foot Taylors Square in Greenville, S.C. The firm also entered into a new $40 million credit facility with KeyBank secured by the Town Center at Aquia, a 162,509-square-foot property in Stafford County, Va. The loan is due to mature in December 2009 and features two six-month extension options… BB&T Real Estate Funding LLC closed a first mortgage on MacArthur Park, a 198,366-square-foot grocery-anchored shopping center in Irving, Texas.
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