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Federal Realty Closes $275M Unsecured Term Loan

Federal Realty Investment Trust closed on a $275 million unsecured term loan. The loan features an interest rate at an annual rate of LIBOR plus 145 basis points, with a November 2018 maturity date. It also comes with an accordion feature allowing expansion up to $350 million and the ability to prepay the loan without premium after three years. Prior to closing the transaction, Federal Realty swapped $275 million of LIBOR exposure through November 1, 2018 at a rate of 1.72 percent, resulting in a fixed 3.17 percent rate throughout the term of the loan.

$400 million revolving credit facility, to fund near-term acquisition and development expenditures at Santana Row, Pike & Rose and Assembly Rose, and for general corporate purposes.

“This unsecured term loan execution provides attractively priced long-term capital to fund our pipeline of acquisition and development activities while also maintaining a desired structure of well laddered debt maturities,” said Andrew Blocher, senior vice president and CFO of Federal Realty. “We were able to take advantage of a pricing disconnect between the bank and unsecured notes markets by acting swiftly and with the support of a number of our strong existing lending relationships.”

PNC Capital Markets LLC and Capital One Bank National Association acted a joint lead arrangers for the loan. PNC Bank National Association was administrative agent and Capital One Bank National Association syndication agent. Regions Bank and Sun Trust Bank acted as co-documentation agents. TD Bank NA was the lender.

Regency Centers Closes $250M Unsecured Term Loan

Regency Centers Corp. closed on a $250 million unsecured term loan. The loan, which will be funded in January 2012, has a maturity date of December 15, 2016, but can be paid off at par at any time prior to maturity. It features an interest rate of LIBOR plus a margin determined in accordance with the company’s long-term unsecured debt ratings. At the time of closing, the effective interest rate on the loan was LIBOR plus 145 basis points.

Wells Fargo Securities LLC served as the sole lead arranger and bookrunner for the transaction. Wells Fargo Bank National Association was the administrative agent. PNC Capital Markets LLC was syndication agent, Regions Bank, SunTrust Bank and US Bank National Association were documentation agents and Bank of Tokyo – Mitsubishi UFJ Ltd. was senior managing agent. Additional lenders included Bank of America NA, Comerica Bank, JP Morgan Chase Bank NA, Royal Bank of Canada and Sumitomo Mitsui Banking Corp.

American Realty Capital Buys 10 Retail Condos in New York City for $22.5M

American Realty Capital New York Recovery REIT Inc. acquired a fee-simple interest in a portfolio of 10 retail condominiums at 122 Greenwich Ave. in New York City for $22.5 million, excluding acquisition costs. The condominiums are located at the base of a recently constructed 30-unit luxury residential condominium building. They total 8,392 sq. ft. of space, including four units containing 7,080 rentable sq. ft. of retail space and four basement storage units containing 1,312 sq. ft. Three of the four retail units are leased to Starbucks and TD Bank.

Mid-America Sells Two Lender-Owned Shopping Centers

Mid-America Real Estate Corp. negotiated the sale of two lender-owned shopping centers in Indiana.

An Indiana-based private investment group purchased Edison Park Plaza, an 87,788-sq.-ft. community shopping center in Mishawaka. Ben Wineman, of Mid-America, represented the seller in the transaction. The buyer represented itself.

A local private investment group purchased Jefferson Centre, a 16,750-sq.-ft. neighborhood shopping center in Ft. Wayne, for an undisclosed amount. Tenants at the center include AT&T Wireless, Moe’s Southwest Grill, Jimmy Johns and Sprint. Ben Wineman and Heather Rink, of Mid-America, represented the seller in the transaction. Russell Jehl, of NAI Harding Dahm, represented the buyer.

Other Notable Deals

RealtyLink LLC sold a 10,000-sq.-ft. Ulta store it developed in Hendersonville, Tenn. to a private institutional investor for $2.775 million. The store is part of a 500,000-sq.-ft. Glenbrook shopping and entertainment district.

Okeechobee 9847 bought 9835-9847 Okeechobee Blvd. in West Palm Beach, Fla. from IBERIABANK for $2.6 million. The property includes a freestanding McDonalds with a long-term ground lease and a vacant, 3,750-sq.-ft. retail building constructed in 2007. William Strauss, of CB Richard Ellis, represented the buyer in the transaction. The seller represented itself. It had taken ownership of the property through foreclosure.

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