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Deal of the Week 12/10

Inland Real Estate Corp. has repurchased $10.5 million in principal amount of its convertible senior notes in a private transaction using available funds on hand. The company’s board of directors has recently authorized a debt repurchase program under which Inland Real Estate Corp. may from time to time repurchase up to $30.0 million in principal amount of its outstanding 4.625 percent convertible senior notes due in 2026. The repurchases can take place either in the open market or through private transactions.

“This strategy is a reaction to an inquiry from holders of our debt,” says Mark Zalatoris, president and CEO with Inland Real Estate Corp. “We did an unsecured convertible note offering in 2006 and we get calls now and then from some of the investors about whether or not we’d be interested in buying back some of that debt. That depends on the price. This is a privately negotiated transaction, in which we bought it back at what we believe is a very good discount and it strengthens our balance sheet.”

The company faces $48 million in secured financing coming due in 2009 and hopes to pay it back with free cash flow and, if necessary, a draw on its line of credit, according to Brett Brown, senior vice president and CFO with Inland Real Estate Corp.

Other Notable Deals

Holliday Fenoglio Fowler, L.P. arranged the sale of a 213,685-square-foot retail portfolio located throughout the Houston metropolitan area to Houston Joint Properties,LTD for an undisclosed amount. The portfolio contained seven properties and was purchased clear of debt. As part of the deal, Houston Joint Properties will also purchase an eighth center, with the closing scheduled for the first quarter of 2009. The firm has already retained Satya, Inc. to manage all eight properties… Marcus & Millichap Real Estate Investment Services arranged the sale of Towne Park Plaza, a 201,906-square-foot shopping center in Albuquerque, N.M., from Towne Park Plaza LP to Towne Park Plaza LLC for $20 million… Edens & Avant purchased a 116,000-square-foot retail portion of CityVista, an 843,000-square-foot mixed-use project in Washington, D.C. for an undisclosed amount. A 55,000-square-foot Safeway grocery store serves as the anchor for the property… Mark One Capital arranged a $5.5 million loan to refinance Brittany Square, a 57,176-square-foot retail center in Glendale, Ariz. The loan, provided by a commercial bank, features a fixed 6.45 percent rate, a 10-year term and a 30-year amortization schedule.

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