National Retail Properties Inc. (NYSE: NNN), a real estate investment trust, today announced the closing of a new $450 million unsecured credit facility, replacing its existing $400 million credit facility.
The new facility matures May 2015, with an option to extend maturity to May 2016. The facility is priced at LIBOR plus 150 basis points. The new facility also includes an accordion feature to increase the facility size to $650 million.
Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. were joint lead arrangers and joint book-runners of this credit facility with Wells Fargo Bank N.A. as the administrative agent and Bank of America N.A. as the syndication agent. Documentation agents were PNC Bank N.A., Royal Bank of Canada and U.S. Bank N.A.. Other bank participants include BB&T, Citibank N.A., SunTrust Bank, Capital One N.A., and Raymond James Bank FSB.
Lend Lease to Sell Interest in King of Prussia Mall to Morgan Stanley Fund
Lend Lease entered into an agreement to sell its interest in King of Prussia mall, located northwest of Philadelphia, to the Morgan Stanley Prime Property Fund at a gross valuation of $1.25 billion.
Lend Lease currently holds a 50 percent interest in the property and will receive net proceeds of $545 million from the transaction after taking into account property level debt. The firm expects to book a profit of $100 million, net of tax and other costs. The proceeds will be used to repay the firm’s debt and fund its investment pipeline in the United States. The transaction is subject to customary conditions of this type of partnership and is scheduled to close in August 2011.
Lend Lease originally acquired interest in the center in 1996. At approximately 2.8 million square feet, King of Prussia is the largest enclosed mall on the East Coast of the United States.
Cassidy Turley to Acquire Carter's Brokerage and Property Management Group
Cassidy Turley, a commercial real estate services provider, announced its commitment to acquire the brokerage and property management businesses of Carter , an Atlanta-based commercial real estate services firm. Carter maintains full-service offices in Atlanta and Tampa and various offices throughout the U.S.
"Cassidy Turley is delighted to announce our commitment to acquire the brokerage and property management businesses from Carter," Cassidy Turley CEO Mark Burkhart said in a statement. "Carter's thoughtful and client-driven approach is consistent with ours and will provide our clients across the country access to the best advice from an industry leading team in this region."
Carter was founded in 1958 in Atlanta as a brokerage and property management firm and evolved into a full service real estate company, offering corporate services, property management, investment sales and project management for clients across the nation.
Once the acquisition is completed, Carter's brokerage services and property and facility management groups will operate as Cassidy Turley. Carter has completed transactions valued at $4.6 billion in Atlanta and Tampa alone in the past five years and manages 25 million square feet in 11 states on behalf of private, institutional and corporate clients as well as for its real estate funds.
Going forward, Carter will focus on continuing to grow its remaining and development, project management, investments, asset management and strategic consulting groups.
DESCO Group Closes Venture with USAA
The DESCO Group of St. Louis announced USAA Real Estate Co. as its new equity partner in the ownership of 28 shopping centers totaling over 2.3 million square feet and anchored by Schnucks supermarkets in Missouri, Illinois, Indiana, and Tennessee. DESCO will be the managing member of the new venture.
"When Charter Hall announced the decision to dispose of its U.S. assets, we seized upon the opportunity to structure a deal with new partners who share our commitment to continued growth in acquisition and development," DESCO President and CEO Mark Schnuck said in statement. “We are excited about entering into a joint venture with USAA. This company brings significant outside capital which will enable DESCO to invest in our portfolio and aggressively grow assets under management, specializing in supermarket-anchored shopping centers across the country,"
Although Schnuck Markets Inc. is a tenant in the 28 shopping centers, the new venture is completely independent of the grocery company. Eastdil Secured is the investment bank of record on the transaction. Iron Tree Capital LLC provided additional advisory services.
Lauth Affiliate Completes Re-Organization
Lauth Investment Properties LLC (LIP) an affiliate company of Lauth Group, has emerged from Chapter 11.
Its plan of re-organization has been approved by the U. S. Bankruptcy Court for the Southern District of Indiana. LIP serves as a holding company for much of the real estate developed by Lauth over the last several years.
The announcement successfully caps LIP’s efforts to restructure itself.
“The process we just completed was one we never planned for or expected. Nonetheless, we successfully worked through the myriad details that LIP’s complex structure required. We are glad to have it behind us,” LIP Chairman and CEO Robert Lauth said in statement.
TNP Strategic Retail Trust Acquires North Dakota Property
TNP Strategic Retail Trust Inc. a publicly registered non-traded REIT, acquired the 114,292-square-foot Pinehurst Square East shopping center in Bismarck, N.D., for an undisclosed price.
The seller, a group of tenant-In-common investors, voted to UPREIT the property into Strategic Retail Trust. The UPREIT structure allows investors to contribute property to SRT on a tax-deferred basis and receive an ownership interest in the company's operating partnership.
Pinehurst Square East was built in 2005 and is more than 90 percent leased. Major tenants include T.J. Maxx, Old Navy and Shoe Carnival. Tenants have staggered lease expirations that range from 2011 to 2017.
Other Notable Deals
Cohen Financial secured a $6.2 million refinancing for the 43,000-square-foot Chandler Plaza retail center in Chandler, Ariz. Chandler Plaza tenants include, East Valley Diagnostic Imaging and several other major medical tenants. Brandon Harrington, Cohen financial director in the Phoenix office, originated the transaction with a CMBS lender. He secured a 10-year, low interest fixed-rate loan with a 30-year amortization. The borrower is Chandler Holdings LLC.
Jim Kirkpatrick, a vice president in Grandbridge Real Estate Capital’s Houston office, recently closed a $5.3 million first mortgage loan secured by Arcadia, a 22,400-square-foot retail center in Cinco Ranch near Katy, Texas. The property, which is 100 percent leased to such tenants as First Community Bank, FedEx Kinko’s, Mooyah Burgers & Fries and Potbelly Sandwich, is owned by HRC Partners Ranch Ltd., an Excel Commercial Real Estate and New Regional Planning partnership. Funded through Grandbridge’s CMBS relationship with Morgan Stanley, the transaction went from application to close in just 21 days. The nonrecourse, fixed rate loan used to refinance the property out of a construction loan, features a 10-year term and 25-year amortization at a 5.42 percent interest rate. The loan was sized to 75 percent of value.
The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Save-A-Lot property located in Chicago for $2.29 million. The 16,290-square-foot building is fully leased to Save-A-Lot on a long term basis. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Chicago based developer. The purchaser was a private high net worth investor from New Jersey.
San Diego brokers Brian Mulvaney and Mark Swerling of Voit Real Estate Services directed the $1.09 million sale of a 2,036 square-foot Jack in the Box restaurant in Houston. Mulvaney and Swerling worked together to represent the seller, Mulvaney Financial LLC of San Diego.Voit achieved a cap rate of approximately 7.29 percent on the transaction, according to Mulvaney. The buyer, John F. Charleston Trust of 1998, was represented by Matt Waterman of Pegasus Investments.’