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Forest City Reaches Agreement on $500M Credit Facility

Forest City Enterprises Inc. reached an agreement on a new, two-year, $500 million revolving credit facility with its 15-member bank group. The transaction is expected to close by the end of the year.

“This is a major step in our ongoing efforts to further improve liquidity and strengthen our financial position,” Forest City President and CEO Charles A. Ratner said in a statement. “We’re deeply gratified by the support shown by the members of our bank group in this process.”

Key Bank N.A. will serve as administrative agent, PNC Bank N.A. will serve as syndication agent and Bank of America N.A. will serve as documentation agent for the group. All 14 members of the company’s prior bank group, along with one new bank, are part of the new facility. The new facility replaces Forest City’s prior $750 million credit facility, which was scheduled to mature in March 2010.

HFF Completes Two Refinancings, One Sale

The Dallas office of Holliday Fenoglio Fowler L.P. (HFF) arranged a $22.6 million refinancing for the 148,806-square-foot Lincoln Park grocery-anchored retail center in Dallas.

HFF managing director Kevin MacKenzie and senior managing director Trey Morsbach worked exclusively on behalf of a joint venture between a client of Invesco Real Estate and Inland Western REIT to secure the five-year, fixed-rate loan. The loan is replacing debt that was maturing in November 2009.

The property is 98 percent leased to tenants including Tom Thumb, the Cheesecake Factory, Container Store and Barnes & Noble.

In a separate deal, the Los Angeles office of HFF secured a $16 million refinancing for the 300,000-square-foot Bear Valley Shopping Center in Denver. The property is 85 percent leased.

Working exclusively on behalf of Guggenheim Real Estate LLC, HFF managing director Todd Sugimoto and senior managing director Paul Brindley placed the five-year, fixed-rate loan with PPM America. The new loan, which will be serviced by HFF, paid off a maturing loan from another life company.

Lastly, the Atlanta office of HFF closed the $5.4 million sale of a 57,230-square-foot free-standing Harris Teeter in Wilmington, N.C. HFF directors Jim Hamilton and Richard Reid and associate director Kevin Hurley marketed the property on behalf of the seller, Inland Western REIT. Lake Davidson Village LLC, an affiliate of Chen Development LLC, purchased the property.

Divaris Brokers Two Deals

Divaris Real Estate Inc. (DRE) announced the sale of a 5,183-square-foot Applebees Restaurant in Virginia Beach,Va., to Good Steward Properties-Kempsville LLC for $1.95 million. Alexander Divaris and Jason Oliver of DRE’s investment sales group represented the buyer, a private investor, in the transaction. The seller of the property was DBAPPLEF LLC. The property remains in a long-term lease to Applebee’s International.

In a separate deal, DRE announced the sale of a 38,414-square-foot former Circuit City, also in Virginia Beach, to the City of Virginia Beach Development Authority for $5 million.

Alexander Divaris, Jason Oliver and Gerald Divaris, represented the buyer in the transaction. The seller of the property was CC Virginia Beach LLC.

Other Notable Deals

Stan Johnson Co. completed the sale of a fee simple ground lease property 100 percent leased to Lowe’s Company Inc. in Lancaster, Pa. to a private investor for $10.2 million. Brad Pepin and Joey Odom of Team Hughes of Stan Johnson Co. represented the seller, an institutional client based in the northeast. Bill Comp of Wilson-Comp Associates represented the buyer in the transaction.

Nash Salah, a private investor, bought a 5,000-square-foot retail property in Huntington Beach, Calif. from Howard Abel, another private investor, for $2.6 million. Brian Williams of Voit Real Estate Services’Anaheim metro office represented the buyer. Mike Abel of Lee & Associates represented the seller.

Nassimi Realty acquired the 180,501-square-foot Knoxville Commons in Knoxville, Tenn., and the 119,154-square-foot Park Plaza Shopping Center in Hopkinsville, Ky., from Simon Property Group for an undisclosed price.

ATCO Advisory Services acquired the 14,000-square-foot The Shops at 360 for an undisclosed price. The center is a collection of nine retail stores located on the ground floor of the mixed-use 360 project in Austin, Texas.

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

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