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Forest City Exercises Accordion Feature

Forest City Enterprises Inc. exercised the accordion feature of its revolving credit facility, bringing the facility to the maximum $450 million commitment.

The expansion adds a 14th lender to the facility, and also reflects increased commitments from two existing banks in the group. The three-year facility, with an additional one-year extension option, originally closed on March 30, 2011, at $425 million.

"We are pleased to bring our new line of credit to its full target commitment level, and grateful for the support and confidence from our lenders that this expansion reflects," Forest City President and CEO Charles A. Ratner said in a statement. "The new line has more favorable pricing and covenants, as well as a longer term with an extension option. It is one piece of our ongoing efforts to manage corporate recourse debt, improve our liquidity and balance sheet, and position the company to take advantage of future growth opportunities."

HFF secures $35M Refinancing

HFF announced today that it has secured a $35 million refinancing for the 182,743-square-foot Oceangate Commerce Center> grocery-anchored retail center in Hawthorne, Calif.

Working exclusively on behalf of the borrower, The Arba Group, HFF placed the 15-year fixed-rate loan with AIG Asset Management. The loan, which has a 30-year amortization schedule, will be serviced by HFF and is refinancing maturing debt on the property.

Completed in 1996, the property is fully leased to tenants including Food 4 Less, Ross, Sportsmart, Michaels, Payless, Starbucks and Verizon. Oceangate Commerce Center is part of a larger retail center that is shadow-anchored by Home Depot and Best Buy, among others.

The HFF team representing The Arba Group included managing directors Peter Smyslowski and Mark Wintner.

MMCC Arranges Drugstore Portfolio Refinancing

Marcus & Millichap Capital Corp. arranged $30.6 million in refinancing loans for a 23-property single-tenant net-leased portfolio. The properties are Walgreens and CVS drugstores located throughout the United States.

Jake Roberts, a vice president capital markets and Anita Paryani, a senior director capital markets, both in the firm’s West Los Angeles office, arranged the refinancing. The client had a loan at 6.89 percent fixed for 10 years that was due in April.

“Originally, the borrower had decided to wait until February of this year to start the refinancing due to the prepayment penalty, but MMCC was able to lock in the interest rate before Treasuries went up in November 2010 and still not close until late March 2011,” Roberts said in a statement.

The forward rate lock cut the borrower’s prepay from more than $500,000 to less than $50,000, according to Roberts.

The new loan is fixed for 10 years at 4.30 percent. The loan-to-value is 50 percent.

Cedar Completes $23.5M Purchase and $10.8M Sale

Cedar Shopping Centers Inc. completed the previously-announced purchase of Northwoods Crossing in Taunton, Mass., on behalf of the joint venture between Cedar (20 percent) and RioCan REIT (80 percent). Cedar also completed the sale of Fairfield Plaza, a non-core property, in New Milford, Conn.

Northwoods Crossing is a 160,000-square-foot shopping center anchored by a 115,000-square-foot B.J.'s Wholesale Club with a lease extending to 2023 and a 19,000-square-foot Tractor Supply with a lease extending to 2025. The property is 100 percent leased. Other tenants include Dollar Tree, Ruby Tuesday's and Wendy's.

The purchase price, exclusive of closing costs and adjustments, is approximately $23.5 million and is subject to existing financing of approximately $14.4 million. Cedar's share of the equity investment is approximately $1.8 million above the existing debt, funded from its secured revolving credit facility. RioCan's share of the equity investment above the existing debt is approximately $7.2 million.

Fairfield Plaza is a 72,000-square-foot center anchored by T.J. Maxx and Staples to an affiliate of and was sold to Urstadt Biddle Properties Inc. for $10.84 million, subject to an existing first mortgage loan in the amount of approximately $5 million. The mortgage matures in 2015.

Cedar received net cash proceeds of approximately $5.7 million, and expects to report a net gain of approximately $500,000 on the sale. The proceeds were used to reduce amounts outstanding under the Company's credit facility.

Madison International Realty Acquires 50% Stake in California Center

Madison International Realty acquired a 50 percent equity interest in Bridgeport Marketplace, a 126,769-square-foot mixed-use grocery-anchored retail center in Valencia, Calif., in a transaction worth approximately $10 million.

Developed in 2008, Bridgeport Marketplace is 94.5 percent leased. The retail component comprises 97,786 square feet and is anchored by Valley Produce Market, Walgreen's and California Pizza Kitchen. The 28,953-square-foot medical office component is long-term leased to the Southern California Orthopedic Institute.

Dizengoff-Trading Group Purchases Coral Springs Property

Dizengoff-Trading Group has purchased the 63,9000-square-foot North Hills Square shopping center in Coral Springs, Fla. The company paid $8.9 million, or $139.28 per square foot. The seller is an undisclosed financial institution.

North Hills Square is anchored by a 52,024-square-foot Wal-Mart Neighborhood Market which comprises 81 percent of the Center’s gross leasable area. Other major tenants include Wendy’s and Manhattan Bagel. Overall, the shopping center is 97 percent occupied.

North Hills Shopping Center marks the third Florida retail purchase for Dizengoff-Trading Group in the past two years. Dizengoff-Trading Group has invested more than $70 million in Florida real estate since opening an office in Boca Raton two years ago.

Other Notable Deals

CB Richard Ellis arranged the sale of a 14,469-square-foot freestanding retail building in Loxahatchee, Fla., occupied by Walgreens on a 25-year lease. The property was acquired by US Property Management LLC for $7.87 million. CBRE brokers Mark Drazek, Dave Donnellan, Todd Weintraub and Bill Strauss represented the seller, Loxahatchee Venture LLC.

The Boulder Group completed the sale of a single tenant net leased Citizens Financial Bank property located in St. John, Ind., for $1.62 million. The 36,258 square foot parcel is 100 percent leased on a long term basis to the publicly traded bank. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Chicago based partnership. The purchaser was a private high net worth investor from Canada.

Plaza Advisors announced the sale of the 200,000-square-foot Northwood Plaza in Clearwater, Fla. The major tenants of the 91-percent occupied center include Publix, Stein Mart, CVS, Talbots, Anthony’s Coal Fired Pizza and Starbucks. Plaza Advisors represented the seller in the transaction and Co-Managing Partners Jim Michalak and Anthony Blanco, together with Senior Financial Analyst Lenard Williams were involved in the engagement. The seller and buyer were Northwood Plaza LLC and AEW Capital Management L.P., respectively.

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