Deal of the Week (4/3)
Apr 3, 2009 2:36 PM
Macerich Co. (NYSE: MAC) received a commitment for a $205 million refinancing of North Bridge Center in Chicago. The loan term is seven years at a fixed interest rate of 7.5 percent and is expected to close in June 2009. The lender is a major life insurance company.
On another 2009 maturity, the company has closed on a $115 million bank refinancing of Twenty Ninth Street Center in Boulder, Colo. The loan is a two year loan with a one year extension option. The interest rate floats at LIBOR plus 3.40 percent with a floor of 5.25 percent. The initial rate is 5.25 percent.
In addition, the REIT closed on a two year extension of the $54 million CMBS loan on Inland Center in San Bernardino. The new loan maturity date is February 11, 2011. The loan will carry the existing fixed interest rate of 4.64 percent until July 11, 2009. Effective July 11, 2009, the fixed interest rate increases to 5.00 percent, effective January 11, 2010, the fixed interest rate increases to 5.50 percent, and effective July 11, 2010, the fixed interest rate increases to 6.00 percent.
The company also reached agreement on an extension of its loan on Northridge Mall in Salinas, Calif. The extended loan amount will be $72 million at a fixed interest rate of 7.5 percent. The loan is now scheduled to mature in January, 2011.
Upon completion of these financings and after excluding loans with built in extensions, the company will have only $223 million of remaining 2009 loan maturities.
Other Notable Deals
Simon Property Group (NYSE: SPG) completed two recent financings. It completed a $97.5 million mortgage financing for Woodland Hills Mall in Tulsa, Okla. The The interest rate on the 10-year loan is 7.79 percent. The previous loan on this property was a $78.6 million, 7.00 percent mortgage. The company also completed a $100 million mortgage financing for Penn Square Mall in Oklahoma City, Okla. The interest rate on the 7-year loan is 7.75 percent. The previous loan on this property was a $65.8 million, 7.03 percent mortgage.… Phillips Edison & Co. completed a $118 million secured revolving credit facility. Banc of America Securities is the lead arranger and Bank of America, N.A. is the administrative agent. The credit facility is secured by 22-properties and has a term of three years with two one-year extension options. As a result of the financing, the company has no meaningful debt maturities until 2011…. A subsidiary of Forest City Enterprises, Inc. (NYSE: FCE.A and NYCE: FCE.B) has been selected by BlackRock Inc. to assume management and leasing duties at the 1.7-million-square-foot Southlands mixed-use center in Denver, Colo…. During the first quarter, Kimco Realty Corp. Group (NYSE: KIM) obtained $212 million in secured debt commitments. These commitments were sourced from five different lenders for the financing of six individual properties. These loans are expected to have maturities ranging from three to 15 years with interest rates ranging from 5.95 percent to 7.63 percent. In addition, the company is currently negotiating term sheets for financing secured by 14 properties that is expected to generate proceeds of approximately $193 million. The company is also pursuing additional secured debt secured by nine other properties that it believes may generate proceeds of approximately $197 million. The company is marketing a new $200 million unsecured term loan with a group of banks. The company has received commitments totaling $160 million to date from nine banks. During February 2009, the company repaid its $130 million 6.875 percent senior notes at maturity.… Equity International sold 2.75 million shares of Brazilian mall owner BR Malls. The company did not specify how much it received, but based on BR Mall's share price, the deal would have been about $15 million…. Faris Lee Investments arranged four sales totaling $8.2 million in Moreno Valley, Calif. The sales include a 1.6-acre land sale ground-leased to Walgreens; a newly constructed, 2,304-square-foot building occupied by Del Taco; a 36,590-square-foot land sale ground-leased to Carl’s Jr; and a 32,234-square-foot land sale ground-leased to KFC. The properties are located within the 79,252-square-foot Iris Plaza. The sellers were Iris Partners LLC and Maple Leaf Group LLC and the buyer was Schlosser Properties, Co. Colliers International represented the buyer…. Stan Johnson Co. completed the sale of a 14,820 square‐foot free‐standing Walgreens in Plano, Texas for $5.8 million.
(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)
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