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Glimcher Modifies, Extends Corporate Credit Facility

Glimcher Realty Trust completed an extension and modification of its corporate credit facility.

With the exercise of available extension options, the modification provides additional term through December 2013, increases the facility commitment amount from $200 million to $250 million, lowers the borrowing cost of the facility by removal of the LIBOR floor, and provides enhanced flexibility regarding the utilization of proceeds and borrowings from the facility.

As part of the modification, the company improved the current collateral pool securing the credit facility by granting first mortgage liens on three additional properties and contributing them to the collateral pool for the credit facility.

In order to add the additional properties to the collateral pool, the company repaid the existing mortgage loans on Morgantown Mall, Northtown Mall and Polaris Lifestyle Center.

Lastly, the modified facility also provides the company the opportunity to increase the facility commitment amount to $300 million by providing additional collateral and adding new financial institutions as facility lenders or obtaining the agreement from the existing lenders to increase their lending commitments.

“The modified credit facility is on terms consistent with the current market and is reflective of the company’s improved balance sheet and overall risk profile,” Mark E. Yale, Glimcher executive vice president and CFO, said in a statement. “The enhanced flexibility provided by the modification will also support the company in the execution of its business strategy going forward.”

The company’s bank group is led by KeyBank N.A., as administrative agent, and Bank of America, N.A., as co-syndication agent. Other participating banks in the transaction include Wells Fargo Bank N.A., as co-syndication agent, ,U.S. Bank N.A. and Huntington National Bank, each as co-documentation agent, Aareal Capital Corp., Eurohypo AG, New York branch, Goldman Sachs Bank USA, and PNC Bank N.A.

Developers Diversified Updates on First Quarter Transactions

Developers Diversified Realty Corp. announced that it has acquired its partners' interests in two prime shopping centers valued at $80 million in the aggregate and disposed of $43 million of non-prime assets.

The company acquired its partners' 50 percent ownership interests in two prime shopping centers for $40 million. As a result of the transactions, the company now owns 100 percent of the two shopping centers. The aggregate gross value of the two centers is $80 million.

The centers, which total 811,157 square feet, are located in Cleveland and Minneapolis, and are 98 percent leased. Both assets are large-format power centers with grocery components, with anchors including Walmart Supercenter, Home Depot, Kohl's, Hobby Lobby, Cinemark, PetSmart, Cub Foods, Bed Bath & Beyond, Gander Mountain, Michaels, Petco and Old Navy.

The two existing short duration loans on the centers aggregating approximately $50 million were repaid in connection with the company's acquisition. The previous loans matured in 2011 and had a blended average interest rate of 5.6 percent. The Minneapolis center remains unencumbered and the Cleveland center was refinanced with a new 11-year, $21 million mortgage at a fixed rate of 5.7 percent.

The firm also sold six non-prime assets and three land parcels during the quarter for aggregate proceeds of approximately $43 million, of which the Company's share was $20 million. The non-prime assets sold averaged 79 percent leased and were predominantly located in tertiary markets with substandard demographics. An additional $73 million of non-prime or non-income producing assets are currently under contract for sale, of which the Company's share is $72 million.

Forest City Closes Credit Facility; Sells JV Interest in N.Y. Portfolio

Forest City Enterprises Inc., closed a new, $425 million revolving credit facility with a 13-member bank group. The new, three-year facility with an additional one-year extension option, also allows for additional banks to join the group, up to a maximum line of $450 million.

"This closing is an important step in preparing Forest City to take advantage of improving conditions in real estate and in the markets we serve," 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, all of which will be beneficial in managing our business going forward and taking advantage of future growth opportunities."

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. Eleven banks that were members of the company's prior bank group, along with two new banks, are part of the new facility. The new facility replaces Forest City's prior revolving credit facility, which was scheduled to mature in February, 2012.

The announcement came one day after Forest City announced the creation and closing of a joint venture with Madison International Realty LLC for ownership of a portfolio of Forest City's urban retail centers in the New York City metropolitan area.

Under the terms of the joint ventures, an affiliated entity of Madison International Realty will enter into existing partnerships in 15 mature retail and entertainment properties that are valued by this transaction at $851.5 million, including $499.9 million of debt. Madison will receive a 49 percent equity interest in the partnerships in exchange for an investment of $172.3 million in cash. Subsidiaries of Forest City will retain 51 percent equity interest, will serve as asset and property manager, and will manage leasing for the joint ventures. The transaction's implied valuation represents a 6.9 percent cap rate on 2010 net operating income for the properties.

The properties included in the transaction are the 42nd Street Retail and Entertainment Complex and Harlem Center (retail component) in Manhattan; Atlantic Center, Atlantic Terminal (retail component) and The Heights in Brooklyn; Queens Place, Steinway Street Theatres and Shops at Northern Boulevard in Queens; Shops at Bruckner Boulevard, Castle Center and Shops at Gun Hill Road in the Bronx; Shops at Richmond Avenue and Forest Avenue Cinemas on Staten Island; and Columbia Park in North Bergen, N.J.

Ramco-Gershenson Prices Offering

Ramco-Gershenson Properties Trustpriced its underwritten public offering of $80 million (1,600,000 shares) of newly issued 7.25 percent cumulative convertible perpetual preferred shares of beneficial interest. The preferred shares have a liquidation value of $50.00 per share.

The joint book-running managers for this offering are Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC. KeyBanc Capital Markets Inc. is acting as lead manager of the offering, and Stifel, Nicolaus & Co., Inc., Comerica Securities Inc., PNC Capital Markets LLC and RBS Securities Inc. are acting as co-managers. The company has granted the underwriters a 30-day option to purchase up to an additional $12 million (240,000 additional shares) of the preferred shares. Subject to customary conditions, the offering is expected to close on April 6, 2011.

Ramco-Gershenson intends to use the net proceeds from the offering to retire its $30.0 million bridge loan and reduce outstanding borrowings under its secured revolving credit facility. Ramco-Gershenson may use the net proceeds to repay other outstanding indebtedness and for general corporate purposes.

Getty Realty Acquires 66 Shell Branded Properties

Getty Realty Corp. has acquired 66 Shell branded gasoline station and convenience store properties located in and around the Greater Boston and Southern New Hampshire area for approximately $86.1 million, in a sale/leaseback transaction with Nouria Energy Ventures I LLC, a subsidiary of Nouria Energy Group.

Nouria Energy Group currently operates 19 of the sites. The other 47 sites are also being supplied with fuel by Nouria Energy Group and are currently being operated by the existing independent dealers selling gas under the Shell brand.

The 66 properties were acquired in a simultaneous transaction among Motiva Enterprises LLC, Nouria and Getty Realty Corp. whereby Nouria acquired 66 gasoline station and convenience stores from Shell and simultaneously completed a sale/leaseback with Getty of the 66 properties under a long-term triple-net unitary lease having an initial term of 20 years plus renewal options. The company expects to receive approximately $5.8 million of revenue from the investment during calendar year 2011.

CapLease Prices Common Stock Offering

CapLease Inc. announced today that it has priced its previously announced common stock offering. The offering was priced at $5.60 per share and consisted of 10 million shares of common stock. CapLease has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock to cover over-allotments, if any. CapLease expects the offering to close on April 5, 2011, subject to customary closing conditions.

Citi and Wells Fargo Securities are the joint book-running managers of the offering. FBR Capital Markets, Keefe, Bruyette & Woods, KeyBanc Capital Markets and Stifel Nicolaus Weisel are the co-managers for the offering.

Champion Real Estate Buys Hollywood Property

A five-building, mixed-use complex in Hollywood has been sold out of a receivership estate to an affiliate company of West Los Angeles-based Champion Real Estate Co. for $20 million in an all-cash transaction.

Champion Real Estate plans to entitle and build a $100 million transit oriented, mixed use project featuring retail, restaurants and luxury apartments.

The project, located on a 2.76-acre site--bounded by Highland, Selma, Hawthorne and McCadden--consists of three small office buildings, two multi-family structures and three parking lots, according to receiver Taylor B. Grant, who heads Newport Beach, CA-based Real Estate Receiverships, which handled the sale. U.S. Bank was the lender.

Panavision occupies one of the office buildings, about 25,000 square feet, and the other two smaller buildings are about 50 percent occupied. The low-rise apartment buildings are vacant and a 1,500 square-foot restaurant formerly occupied by Numero Uno Pizza is also vacant.

Divaris Handles Sale of Tower Place Festival

Divaris Real Estate Inc. handled the sale of the 114,876-square-foot Tower Place Festival community center in Charlotte, N.C., for $12.7 million. Robert Podewils, investment broker of the Charlotte office of DRE, represented the seller in the transaction with a New York-based group of private investors.

The property is 80 percent occupied, and is anchored by Bally Total Fitness with several other national tenants including Bruegger’s Bagels, Empire Beauty Academy and Once Upon a Child.

Morgan Stanley Closes CMBS Loans on Walgreen Properties

Morgan Stanley closed three CMBS loans totaling almost $11.5 million for three Walgreens drugstores in secondary markets, according to Crittenden Research Inc..

Barry S. Slatt Mortgage Co. arranged all three loans at 74 percent LTV with 30- year amortizations and 10-year fixed terms. Morgan Stanley's debt yield came in at a reduced 9 percent on each loan, which enabled them to maximize leverage based on prevailing cap rates. All three loans were allocated to multi-asset borrowers.

The first loan was for a property in Ohio for $4.25 million with a rate of 2.17 percent over swaps. The other two loans were in North Carolina ($2.85 million) and in Oklahoma ($4.32 million) were for one borrower who locked in the rate at 2.1 percent over swaps.

Cassidy Turley Offices Broker Recent Deals

Cassidy Turley’s affiliates in Columbus, Ohio and San Diego recently brokered retail transactions.

In the first deal, Cassidy Turley Commercial Real Estate Services’ Columbus office recently brokered the sale of two Walgreen stores valued at $9 million. The first, located at 327 W. Fourth Street in Ottumwa, Iowa, sold for $4.3 million. The second, located at 1000 W. Park Avenue in Mansfield, Ohio, was sold for $4.7 million.

Cassidy Turley represented the seller from New York, New York as well as the buyer, American Realty Capital II LLC also from New York, New York. Brokers included Zane Fry, Micha Bitton and Kevin James of Cassidy Turley.

Separately, Cassidy Turley BRE Commercial brokered the sale of a retail building in Loma Linda, Calif. In the deal, DMP Properties purchased a 16,836-square-foot retail building from a private investor for $3.6 million. Chuck Klein and Kevin Held of Cassidy Turley BRE Commercial represented the seller in the transaction. The buyer’s representation was undisclosed.

Other Notable Deals

Cushman & Wakefield Inc. orchestrated the trade of the 53,000-square-foot Turnpike Plaza shopping center in Huntington Station, Long Island, N.Y., fromCentro Properties Group for $7.9 million. The property currently is 95 percent leased, and anchored by Waldbaum’s and Rite Aid. Gary Gabriel, of Cushman & Wakefield’s Metropolitan Area Capital Markets Group, headed the sale with team members Andrew Merin, David Bernhaut and Grace Braverman.

Cohen Financial secured a $7.7 million refinancing for 111,691-square-foot Westgate Shopping Center located in Woodland, Calif. The property’s anchor tenants include Raley’s Supermarket and Jo-Ann Fabrics. Kenneth M. Fox, a managing director in Cohen Financial’s San Francisco office, originated the transaction and secured the fixed rate financing in cooperation with Westcap Corp. The lender was Morgan Stanley. The 10-year loan has 30-year amortization at a competitive interest rate. LTV was below 70 percent on the property.

Viking Partners Fund I acquired a note with an unpaid balance of $5 million secured by the 25,635-square-foot Grand Pointe Shopping Center in Grandville, Mich. Current tenants including Verizon Wireless, GameStop and Electric Beach. The property was built in 2004, sits on 4.38 acres and is currently over 50 percent occupied.

TNP Strategic Retail Trust Inc. acquired the 109,250-square-foot Craig Promenade in North Las Vegas, Nev. The property includes 91,750 rentable square feet and two raw land parcels consisting of 17,500 buildable square feet that can be sold, ground leased or developed. Constructed in 2005, Craig Promenade is 77.5 percent leased and anchored by Big Lots. Other tenants include Carl’s Jr., Popeyes Louisiana Kitchen and MetroPCS.

The Dana Commercial Group at Prudential Douglas Elliman announced the sale of a free-standing, approximately 16,000-square-foot building to Associated Supermarkets for $6.5 million. The building is located on busy 110th Street near Lexington Avenue in New York City. The seller was a trustee of the court, who was represented by Gary and Rick Dana of the Dana Commercial Group of Prudential Douglas Elliman. The buyer was represented by Joseph Tar Schmidt.

MIG Real Estate, a Newport Beach, Calif.-based real estate investment company formerly known as Stoneridge Capital Partners, has acquired the 190,000-square-foot I-225 Plaza in Aurora, Colo. The five-building mixed-use property features office, industrial and retail components. Terms of the sale were not disclosed. The five-building property is 88 percent leased to a range of office, industrial, retail and services tenants

Q10 | New York Realty Advisors LLC closed a $2.1 million loan secured by a first mortgage on a Winn Dixie grocery store in Anniston, Ala., and a Rite Aid drug store in Fayetteville, N.C. The properties are part of a large portfolio of single tenant properties that the borrower has amassed over the past 25 years. The loan was placed with a leading commercial bank the proceeds of which were used to refinance a maturing CMBS loan. The borrower had the option to float over LIBOR or swap into a fixed-rate loan at any time during the term of the loan. The floor on the floater was set at 4.25 percent while the fixed rate option was approximately 25 basis points higher. The lender amortized the loan over a 25-year period.

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