Retail Traffic

Inland Western Secures $140M in Refinancings

Inland Western Retail Real Estate Trust Inc. closed on the refinancing of $140 million of mortgage loans with a major life insurance company.

Secured by seven retail properties having mortgages due to mature in 2009 and 2010, the new mortgage loan has a five-year term inclusive of a one-year extension option. Year-to-date, the company has refinanced $401.9 million and retired $204.2 million of its maturing debt associated with asset sales and has an additional $619.1 million under application and $392.3 million in extension negotiations. As part of the company’s strategy, management is focused on accessing multiple sources of capital in order to address its upcoming debt maturities, including working to structure a portfolio of loans to be TALF-eligible.

“This financial transaction highlights the measurable strides we have made to strengthen the balance sheet, despite an extremely challenging environment,” Inland Western CEO Steven P. Grimes said in a statement. “We remain diligent in our focus on strengthening the balance sheet throughout this protracted recovery, in order to position this company for the future.”

Other Notable Deals

CBL & Associates Properties Inc. (NYSE: CBL) announced that it closed the extension and modification of its $560 million credit facility, maintaining 100 percent lending capacity. The facility was scheduled to mature in August 2011 (assuming exercise of the remaining extension option) and has been extended to April 2014. The extended facility is currently partially secured and will be converted to a fully secured facility over the new term. The conversion includes drawing available amounts under the facility to retire property-specific mortgage loans as they mature. The unencumbered properties will then be used as collateral to secure the credit facility. The extension and modification agreement calls for amounts outstanding under the $560 million new secured facility to bear interest at an annual rate equal to one-month, three-month, or six-month LIBOR (at CBL's option) plus a spread that increases over the facility’s term, commencing with a spread of 75 to 120 basis points (depending upon CBL’s leverage ratio) through August 2010, a spread of 145 to 190 basis points through August 2011 and increasing thereafter to 325 to 425 basis points until maturity, with LIBOR subject to a minimum of 1.50 percent, beginning December 31, 2009…. iCap's Atlanta office arranged a $4.5 million loan for the refinancing of a 33,550-square-foot retail portfolio in Atlanta. The borrower received and extendable 9-year term with a 25-year amortization and an initial 6.25 percent interest rate…. The New Jersey office of Holliday Fenoglio Fowler, L.P. (HFF) arranged a $2.1 million refinancing for a free-standing Duane Reade drugstore in Yonkers, N.Y. for The Hampshire Cos.. HFF placed the fixed-rate loan with Intervest National Bank…. The Rappaport Cos. has been selected to provide property management and leasing services for the 145,000-square-foot Fair Lakes Promenade in Fairfax, Va.

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

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