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RioCan, Cedar Line Up Financing for JV

RioCan REIT and Cedar Shopping Centers lined up $65.2 million in loans on six properties that the two acquired through a joint venture in October.

The REITs secured first mortgage non-recourse financing on all of the acquired assets.

The financings included:

  • Gettysburg Marketplace, 85,000 square feet, Gettysburg, Pa., $10.9 million
  • York Marketplace, 305,000 square feet, York, Pa., $16.1 million
  • Northland Center, 108,000 square feet, State College, Pa., $6.3 million
  • Marlboro Crossroads 68,000 square feet, Upper Marlboro, Md., $6.9 million
  • Towne Crossing , 111,000 square feet, Midlothian, Va. $10.5 million
  • Cross Keys Place, 148,000 square feet, Sewell, N.J., $14.6 million

The approximate loan-to-value for each of the respective loans is 55 percent.

The Cross Keys loan was provided by Bank of America N.A.. The other five loans were arranged by Goldman Sachs Commercial Mortgage Capital L.P. In each case, the loans are at par (no fees) and for a term of 10-years with amortization schedules of 30 years. The weighted average interest rate for these six loans is 5.06 percent. None of the loans are either cross-collateralized or cross-defaulted in any manner and all are non-recourse, subject to normal exceptions.

The closings of the loans resulted in net proceeds to RioCan of approximately $51.7 million and to Cedar of approximately $13.2 million.

In addition to the secured financing on the properties, RioCan Holdings has arranged a senior secured line of credit facility for its U.S. joint venture activities with Cedar. The line is in the amount of $50 million for a term of 12 months with an extension option for an additional 12 months at LIBOR +3 percent with TD Securities and RBC Capital Markets.

Inland Real Estate Acquisitions Buys Two Florida Centers

Inland Real Estate Acquisitions Inc. acquired two adjacent shopping centers in Fort Myers, Fla., for a combined total of approximately $38.4 million.

The 272,358-square-foot Colonial Square Town Center, anchored by Kohl’s, was purchased for approximately $27.6 million. The nearby 78,835-square-foot Shops at Village Walk, anchored by a Publix grocery store, was purchased for approximately $10.8 million. The properties were acquired on behalf of Inland Diversified Real Estate Trust Inc. and the purchase was facilitated by Joe Cosenza, president of Inland Real Estate Acquisitions and vice chairman of The Inland Real Estate Group of Companies, Inc.

Additional tenants at Colonial Square Town Center include Sports Authority, PetSmart, Dollar Tree, Famous Footwear, AT&T Mobility and Hobby Lobby, which will begin operating in January 2011. Shops at Village Walk’s other tenants include Eyeglass Works, Fantastic Sams, a nail salon, a flower shop and several restaurants.

Inland Western Sells Former Mervyn’s Site to Federal

Inland Western Retail Real Estate Trust Inc. and Federal Realty Investment Trust announced the sale of a former 75,712-square-foot Mervyn’s site in Escondido, Calif. for $11.25 million.

In July 2010, Inland Western signed a 44,760-square-foot lease with Dick’s Sporting Goods Inc. to occupy a portion of the space. Inland Western commenced construction in September to facilitate the early 2011 opening. The tenant improvement costs incurred to date will be reimbursed by Federal Realty Investment Trust with the closing of the transaction.

Weingarten Buys Two Centers

Weingarten Realty acquired two shopping centers totaling 636,000-square-feet. Both acquisitions are high-quality supermarket anchored centers located in high density core markets.

In the first deal, Weingarten acquired Edgewater Marketplace, in Denver. The center is an infill property anchored by King Sooper and also includes Target, which owns its site. The 145,000-square-foot project is 98 percent leased.

Weingarten also purchased the 491,000-square-foot Village Plaza at Bunker Hill in Houston. This center includes a HEB supermarket, an Academy Sports and Outdoors, Babies R Us and PetSmart, along with other retailers.

Bunker Hill was acquired in a joint venture with the current owner/developer, Fidelis Realty Partners, where Weingarten purchased 58 percent of the project.

Canyon-Johnson Urban Funds Purchases Oakland Mixed-Use Project

Canyon-Johnson Urban Funds (CJUF) have acquired Thomas Berkley Square, a recently completed bank-owned property with 88 residential units and ground floor retail in Oakland’s Uptown District.

Canyon Johnson intends to market and sell the residential units as condominiums and lease and sell the property’s ground floor retail space.

Thomas Berkley Square originally housed the business and law offices of its namesake, a pioneering African American publisher, attorney, civic leader and civil rights advocate in the Oakland community. The Strategic Urban Development Alliance (SUDA) planned a two phase redevelopment of the property and constructed the adjacent 110,000 square-foot office building. SUDA ultimately sold the development rights for the residential component to a developer who encountered significant delays and cost overruns associated with the bankruptcy of its general contractor. CJUF purchased the residential building from the construction lender at a significant discount to replacement cost.

The property, which will be rebranded as Uptown Place, is located in the heart of the Uptown District, the entertainment and restaurant community in downtown Oakland launched by former Mayor, and current Governor-elect Jerry Brown.

Phillips Edison Acquires Marketplace Shopping Center

Phillips Edison and Co.'s Fund IV announced the acquisition of Marketplace Shopping Center in Independence, Mo. The property was purchased from Centro Properties Group and Ingrid Long and Drew Quinn of Grubb & Ellis represented the seller on the transaction. The 241,682-square foot-shopping center is anchored by Price Chopper.

Agree Realty Buys Single-Tenant Asset

Agree Realty Corp. acquired a retail property net leased to CVS Caremark Corp. in Mansfield, Conn. for $3.4 million. CVS has approximately 16 years remaining on the base term of the lease.

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