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Federal Realty Raises Funds, Hints at Acquisitions (8/17)

Federal Realty Investment Trust (NYSE: FRT) closed on $265 million in capital raised through previously announced debt and equity offerings. The company sold $150 million in 5.95 percent senior unsecured notes and $115 million in common shares, including the underwriters’ over-allotment option. Federal Realty plans to use the proceeds to pay down a $372 million term loan, fund its redevelopment pipeline and pursue attractive acquisition opportunities, as well as for other general corporate purposes.

“Both the unsecured notes and common equity offering were significantly oversubscribed at very favorable terms, demonstrating continued strong demand for Federal Realty securities from both fixed income and equity investors,” said Andrew Blocher, senior vice president and CFO of Federal Realty, in a statement. “Our strong property performance, effectively executed business strategy and management credibility has enabled us to raise $800 million of proceeds in 2009, despite the very difficulty capital markets environment.”

Earlier this summer, Federal Realty also secured a $139 million loan on a four-property portfolio located throughout Virginia. The loan, arranged through Prudential Mortgage Capital Co., featured a fixed rate and a five-year term. The portfolio, totaling 867,404 square feet of retail space, included the Idylwood Plaza and the Loehmann’s Plaza in Falls Church, Va.; Leesburg Plaza in Leesburg, Va.; and Pentagon Row in Arlington, Va. Holliday Fenoglio Fowler, L.P secured the loan on behalf of the REIT.

Other notable deals

Weingarten Realty Investors ( NYSE: WRI) announced the pricing of $100 million of 8.10% notes due 2019 in an underwritten public offering. The offering is being undertaken through Wells Fargo Securities, LLC, RBC Capital Markets Corp. and Morgan Keegan & Co., Inc. It is expected to close on Aug. 19. Weingarten will use the net proceeds for general business purposes, including reducing amount outstanding under its revolving credit facility…. Acadia Realty Trust ( NYSE: AKR) closed a $47 million loan on Cortlandt Towne Center, a 640,000-square-foot regional shopping center in Westchester County, N.Y. The loan, arranged through Bank of America, features a three-year term and an adjustable rate. Holliday Fenoglio Fowler, L.P. secured the loan on behalf of Acadia…. Kimco Realty Corp. ( NYSE: KIM) closed on a $27.5 million refinancing for Torrance Promenade, a 266,847-square-foot power center in Torrance, Calif. The loan features a 7.25 percent fixed rate and a five-year term and was arranged through an off-shore pension fund. Holliday Fenoglio Fowler, L.P. secured the financing on behalf of Kimco. Torrance Promenade is currently 85 percent occupied…. Trammell Crow Co. sold the Crossroads Mall, a 742,000-square-foot retail center in San Antonio, Texas, to a group of San Antonio and Houston investors for an undisclosed price. Holliday Fenoglio Fowler, L.P. represented the seller in the transaction…. Lin Investments bought Anaheim Hills Plaza, a 71,720-square-foot neighborhood shopping center in Anaheim Hills, Calif., from a local limited partnership for an undisclosed price. The center is anchored by a CVS pharmacy. Hanley Investment Group Real Estate Advisors represented both parties in the transaction…. J.S. Rosenfield & Co. bought the 30-year ground lease to the Coast Village Shopping Center, a 40,000-square-foot retail property in Montecito, Calif. from Pacific Capital Bank, NA. The center is currently 50 percent occupied. J.S. Rosenfield plans to undertake a $1 million renovation and convert the property into a country mart. Pacific Commercial Realty represented the buyer in the transaction. The seller represented itself…. Jang Family Trust bought two Las Vegas retail properties occupied by Del Taco from Innovative Property Partners, LLC and Visionary Partners, LLC for $3.75 million in an all-cash transaction. The sales price translates to approximately $731 per square foot. Both properties, which together total 5,128 square feet of space, feature recently signed 20-year NNN corporate-backed leases. Faris Lee Investments represented the sellers. Marcus & Millichap represented the buyer…. The Riese Organization signed a contract to acquire 34 Union Square East, a 6,250-square-foot retail property in New York City. The firm has tentative plans to locate a TGI Friday’s and Tim Hortons in the building.

(To have your deals included in our weekly roundup, please email releases to David Bodamer or Elaine Misonzhnik.)

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