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CBL Closes Modification of Major Credit Facilities

CBL & Associates Properties Inc. closed the modification of its three major secured credit facilities with aggregate capacity of $1.15 billion including its $520 million secured credit facility, its $525 million secured credit facility and its $105 million secured credit facility.

Outstanding balances on all three lines of credit will no longer be subject to a LIBOR floor and will bear interest at an annual rate equal to LIBOR plus a range of 200 to 300 basis points, depending on the Company’s leverage ratio. The reduction in interest rates represents a more than 200 basis point improvement in average borrowing cost for the facilities.

The maturity of the $520 million facility remains August 2011, with an option to extend the facility to April 2014 (subject to continued compliance with the terms of the facility). The maturity of the $525 million facility was extended by two years, from February 2012 to February 2014, with an option to extend the maturity for one additional year to February 2015 (subject to continued compliance with the terms of the facility). The maturity of the $105 million facility was extended for one year to June 2013.

“We are pleased to extend our major lines of credit and significantly reduce our borrowing costs under the credit facilities,” CBL CFO John Foy said in a statement. “Our bank group continues to demonstrate confidence in our business and the results we have achieved and we appreciate their ongoing commitment.”

Wells Fargo Bank NA is the administrative agent under the $520 million facility and the $525 million facility. First Tennessee Bank NA is the administrative agent under the $105 million facility.

EPN Group Completes Tender Offer for EDT Retail Trust

EPN Holdings II LLC with EPN GP LLC, a completed a tender offer for all the units in the EDT Retail Trust not already held by EPN.

As a result of the purchases of EDT’s units during the Offer period, EPN has increased its interest in EDT from 47.8 percent to approximately 96.4 percent. EPN ultimately plans to compulsorily acquire the remaining EDT units under the terms of the Offer. Following compulsory acquisition of the remaining EDT units, EPN will become the holder of 100 percent of the outstanding units of EDT and it is expected that EDT will be removed from the official list of the Australian Stock Exchange shortly thereafter.

Following the completion of the takeover bid, EPN’s equity investment in EDT Retail Trust is approximately $360 million.

EDT is a REIT focused on investing in U.S. community shopping centers. It currently owns 48 assets in 20 states covering 10.9 million square feet.

EPN is a real estate investment venture jointly formed by Elbit Plaza USA L.P., a subsidiary of Elbit Imaging Ltd. and Plaza Centers N.V., and Eastgate Property LLC, an affiliate of a U.S.-based international fund manager with assets under management of over $ 3 billion, of which approximately $800 million are dedicated to real estate.

Macerich Buys Fashion Outlets of Niagara Falls

The Macerich Co. closed the acquisition of the 526,000-square-foot Fashion Outlets of Niagara Falls.

The center is anchored by Saks Off 5th, Nike, Coach Women's and Men's stores, Old Navy, Gap and Polo Ralph Lauren and includes other tenants including Michael Kors, Barneys NY outlet, J Crew, Cole Haan, Burberry, Tommy Hilfiger, Brooks Brothers, Calvin Klein, Hugo Boss, Banana Republic and 120 others.

The enclosed center's shop tenant sales average approximately $650 per square foot. The center is nearly fully occupied and enjoys a list of tenants waiting for space, leading Macerich to explore options for expansion of the center.

The Fashion Outlets of Niagara Falls was purchased from a subsidiary of AWE Talisman Co. for $200 million, including the assumption of the existing debt of $121 million that has an interest rate of 5.90 percent and a maturity of October 1, 2020. Macerich has entered into a management and leasing agreement for the center with AWE Talisman Co.

Simon Acquires ABQ Uptown

Hunt Companies Inc. completed the $86 million sale of the 220,000-square-foot ABQ Uptown Retail Center in Albuquerque, N.M. to Simon Property Group.

Hunt developed, constructed and opened the lifestyle center in 2006. ABQ Uptown is the retail component of a mixed-use project that includes upscale retail space, residential units, restaurants, entertainment venues, and a Trader Joe’s urban grocery store.

The center is 95 percent leased and generates sales of approximately $650 per square foot. Tenants of ABQ include Ann Taylor, Ann Taylor Loft, Anthropologie, Apple Computer, BCBG Max Azria, California Pizza Kitchen, Francesca's Collections, L'Occitane, Lucky Brand Jeans, Pottery Barn and Williams-Sonoma.

Hunt’s affiliate, TRECAP Partners>b?, served as the investment manager and advised Hunt on the transaction.

DeBartolo Development Acquires Portion of Bradley Commons

DeBartolo Development LLC acquired a portion of the 500,000-square-foot Bradley Commons regional power center anchored by a Wal-Mart Supercenter and Kohl’s department store in the Chicago suburb of Bradley, Ill.

DeBartolo has purchased the 175,000-square-foot piece of Bradley Commons that sits between the two anchors with tenants Dick's Sporting Goods, Bed Bath and Beyond and Petco. The acquisition also includes seven vacant out-lots fronting Route 50 and approximately 98 acres of commercially and residentially zoned land adjacent to and behind the center.

Built between 2008 and 2009, it is pre-leased to approximately 94 percent with national credit, regional, and local tenants.

NorhMarq Arranges $53.3M in Debt and Mezz Financing

Mike Dobbins, Vice President of NorthMarq Capital’s San Diego regional office, arranged $53.3 million in combined debt and mezzanine financing for the 156,291-square-foot Village Walk Shopping Center in Chula Vista, Calif.

Major tenants at the center include TJ Maxx, Trader Joe’s, Pier 1 Imports, PetCo and Henry’s Farmers Market. Debt financing in the amount of $46.3 million was based on a 5-year term and a 30-year amortization schedule and was arranged for the borrower by NorthMarq through its relationship with a CMBS lender. This structured finance included mezzanine funds and closed within 30 days of the signing of the loan application.

Mezzanine financing in the amount of $7 million was based on a 5-year term with a balloon payment at maturity and was arranged for the borrower by NorthMarq through its relationship with a mezzanine lender. These funds provided for an 80 percent loan-to-value.

Robert B. Aikens Acquires Pine Ridge Square

Robert B. Aikens & Associates LLC acquired the 189,000-square-foot Pine Ridge Square center, in Gaylord, Mich. Jeffrey Thompson, president of the company, made the announcement.

Pine Ridge Square is currently home to several major retailers including Big Lot’s, Dunham’s, Bath & Body Works, GNC and Payless Shoe Source. The center currently has 30,000 square feet available for lease.

Loja Real Estate Acquires The Shops at Pacific Station

Tom Engberg, CEO of Loja Real Estate LLC, announced the firm’s acquisition of the 38,828-square-foot The Shops at Pacific Station for one of the firm’s separate accounts. Loja Real Estate LLC, is a wholly-owned subsidiary of Loja Group LLC, a real estate investment management firm.

Loja Real Estate purchased The Shops at Pacific Station from Pacific Station Property LLC for $19.5 million. The transaction closed on July 25, 2011. This is Loja Real Estate’s fourth acquisition.

The Shops at Pacific Station is the retail portion of a 98,403-square-foot vertical mixed-use center containing second and third-story office space totaling 9,733 square feet, and 47 residential condominium units.

Tenants including an Urban Solace restaurant, Bliss 101, Icons, and a Bombshell Boutique Salon. The Shops at Pacific Station is currently 96 percent leased. The development is LEED Silver Certified.

Loja Group was represented by Richard Lebert, senior vice president, Colliers International. Pacific Station Property LLC was represented by Ryan Gallagher, senior managing director, Holliday Fenoglio Fowler L.P. Loja Group has retained Capital Growth Properties Inc., to manage the property.

Cohen and Co. Brokers Sale of Virginia Center

Cohen and Co., Inc. Real Estate announced the sale of the 127,801-square-foot Oxbridge Square in Richmond, Va., for $12.5 million.

Michael Cleeman, senior managing director of Cohen and Company represented the buyer PMAT Acquisition LLC, a real estate investment and development company headquartered in Louisiana in the acquisition from Oxbridge Retail LLC. The center is currently 79 percent leased and anchored by a Martins Supermarket with strong sales volume and includes national retailers Harley Davidson, Starbucks, Popeye's, Subway and UPS.

Other Notable Deals

Marcus & Millichap Real Estate Investment Services arranged the sale of the 50,315-square-foot Paraiso Town Center, an REO shopping center in Newbury Park, Calif. Kyle Matthews, an associate vice president investments in Marcus & Millichap’s Encino office, represented the seller, U.S. Bank. The buyer was Paradise Capital Group LLC, an affiliate of Cardinal Equities LLC, a Beverly Hills, Calif.-based real estate investment firm.

Stan Johnson Co. completed the sale of a 43,505-square-foot retail building in Midlothian, Va., 100 percent occupied by hhgregg to a New Jersey-based private investor. The list price was $5 million. Jim Gibson and Mike Parker of Stan Johnson represented the seller, a Virginia-based private investor. Steve Maloy of ARC Properties represented the buyer.

TNP Strategic Retail Trust Inc. acquired a 45,817-square-foot BI-LO grocery store located within the Chester Plaza Shopping Center in Chester, S.C. Originally constructed in 1991, BI-LO remodeled and expanded the property by more than 15,000 square feet in 1999. BI-LO has a long-term lease in place through 2019 with options through 2039.

Aztec Group Inc. announced that Howard Taft, senior managing director and Charles Penan, director, secured $3 million in debt financing for a ground lease of a Walgreens in Hialeah, Fla. Financing was provided by Symetra Life Insurance Co. Terms of the 20-year, self-amortizing, non-recourse facility includes a 70 percent loan-to-value and 6.04 percent fixed interest rate.

Whitestone REIT announced the sale of the 20,607-square-foot Greens Road Plaza for $1.75 million in an all-cash transaction. The company expects to reinvest the proceeds in acquisitions in its target markets in Arizona, Texas, and Illinois.

RCG Ventures LLC acquired the 59 West shopping center in Bessemer, Ala. The center is anchored by Burke's Outlet, Hibbett Sports and Shoe Shoe.

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