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Centro Receives $2.3B Debt Extension and $659M of New Financing

Centro NP LLC announced a series of financing transactions within the company, its parent Super LLC and its joint venture Centro NP Residual Holding LLC that improves the debt maturity profiles across all three entities.

Centro secured $659.0 million of term loans which mature in 10 years and carry a fixed interest rate of 6.75 percent. These loans are secured by 76 properties owned by the company. Proceeds from these loans will be used to repay approximately $469.3 million of Centro NP LLC debt which had been scheduled to mature on or before December 31, 2010 including a $350.0 million secured revolving credit facility, a $108.7 million secured term loan and a $55.0 million secured term loan.

A portion of the remaining proceeds from the loans will be used to repay a $103.4 million REMIC loan due June 1, 2028, which currently has an effective interest rate of 11.7 percent, with the remainder to be used to fund closing costs and address future debt maturities within the company.

In addition, Super has secured a one-year extension from December 31, 2010 to December 31, 2011 for $2.3 billion of debt, including its $1.7 billion bridge term loan and $580 million of additional outstanding indebtedness within Residual comprised of a $370 million credit facility, a $122.5 million secured term loan and a $105.0 million credit facility

There is no change in credit margins on any of the extended facilities as a result of this extension.

"We are very pleased to have been able to secure the largest single borrower retail financing this year," Centro Properties Group U.S. CEO Michael Carroll said in a statement. "These transactions are critical steps in positioning Super LLC within Centro Properties Group's global restructuring of its US and Australian platforms and are indicative of the strong support of our U.S. lending group.”

Trader Joe's-Anchored Center Sells for $16M

A partnership of private individuals acquired the 42,093-square-foot Foothill Promenade in La Cañada, Calif., from Dollinger Properties for $16 million.

Tenants include Trader Joe's, Union Bank, Petco, Aaron Brothers, Starbucks and Han’s Beauty. The property was built in 1995 and was 100 percent occupied at the time of sale.

William B. Asher of Hanley Investment Group Real Estate Advisors, along with Jim Barthe of Real Estate Portfolio Specialists and Paul and Nathan Strauss of ASB Property Management Inc. represented the buyers.

New York Retail Condo Sells for $10.4M

An undisclosed buyer purchased the 8,426-square-foot retail component of Devonshire House, a pre-war condominium located at 28 E. 10th Street in the heart of Manhattan’s Greenwich Village, for approximately $10.4 million from Devonshire Associates LLC.

A team from Eastern Consolidated, Executive Managing Directors Ronald A. Solarz and Eric M. Anton, Vice Chairman Brian Ezratty, and Senior Director Deborah Gutoff, represented the seller and procured the buyer.

Designed by celebrated architect Emery Roth in 1928, Devonshire House has just undergone a successful multi-million dollar residential condominium conversion. Each of the retail units, which averages 605 square feet, is a separate condominium. This configuration allows for small stores that maximize per square foot rents while retaining the flexibility to combine units into large spaces. The 3,584 square feet of cellar space is split among six of the units along University Place.

Faris Lee Completes Two Deals in L.A. County for $13M

Faris Lee Investments has closed two Los Angeles-area property transactions totaling nearly $13 million.

The 100 percent-leased assets include a property occupied by CVS and Starbucks in Paramount that sold for $7.95 million, and Burger King Plaza located in Los Angeles that sold for $4.95 million with tenants including Burger King, ACE Cash Express and neighborhood shops.

Faris Lee arranged to transfer assumable CMBS loans to the new buyers while obtaining sale prices exceeding the sellers’ expectations, according to Richard Walter, president, Faris Lee Investments.

On the Paramount transaction, Lee Managing Director Nick Coo represented the seller, Los Angeles-based Topaz Paramount LLC, as well as the buyer, Texas and Southern California-based NASA Paramount Centre Enterprises LLC. Faris Lee closed the transaction at a 6.6 percent cap rate. The 15,722-square-foot property provided the buyer with a CMBS loan with a 5.76 percent fixed interest rate.

For Burger King Plaza in Los Angeles, Coo represented the seller Los Angeles-based 7201 South Figueroa LLC. Coldwell Banker represented the 1031 exchange buyer UHL LLC, from Southern California.

The transaction closed at a cap rate of 6.9 percent. The three-building property totaling 16,127 square feet included an assumed CMBS loan featured a fixed interest rate of 6.2 percent for seven years and is amortized over a 30-year schedule.

Other Notable Deals

Mid-America Real Estate Corp.’s investment sales group announced the recent sale of the 158,313-square-foot Hoffman Village Shopping Center in Hoffman Estates, Ill. RMS Properties purchased the center through a special servicer for an undisclosed price. Mid-America brokers Ben Wineman, Stan Nitzberg and Joe Girardi represented the seller in the transaction, while the buyer was self-represented.

The Heiserman Group has joined streetsense, a 10-year old design, brokerage and development firm. The companies will be recognized under the streetsense name, and the combined Bethesda, Md.-based retail real estate company will serve clients nationwide. Streetsense provides a wide range of services, including: branding, master planning, architecture, graphic design, brokerage and development. The financial details of the merger were not released.

Cohen Financial secured a $5 million refinancing for The Fourth Street Shops retail/office project in Berkeley, Calif. Kenneth M. Fox, CCIM, a managing director in Cohen Financial’s San Francisco office, originated the transaction and secured the fixed rate financing. The lender was Sun Life Financial.

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