Inland Western Retail Real Estate Trust Inc. closed on an unsecured $650 million credit facility. The facility includes a $300 million unsecured term loan and a $350 million unsecured revolving line of credit. It amends the company’s existing $585 million secured credit facility.
The new facility has an annual interest rate of LIBOR plus 175 to 250 basis points, based on a leverage grid. It comes with an accordion feature that can increase it to $850 million. The term loan is scheduled to mature in February 2016, and the revolving credit facility in February 2015. Both feature a one-year extension option.
“We are very pleased to refinance our existing secured credit facility with a new, upsized unsecured facility, which we believe will provide the company with enhanced financial and operational flexibility,” said Inland Western CFO and Executive Vice President Angela Aman in a statement. “This refinancing represents a critical step in the evolution of the company’s balance sheet. We appreciate the support of our lenders in closing this significant transaction.”
KeyBanc Capital Markets Inc. and JP Morgan Securities LLC served as co-lead arrangers and joint book managers for this transaction. KeyBank National Association was the administrative agent, JPMorgan Chase N.A. the syndication agent, and Citibank N.A. and Deutsche Bank Securities Inc. the documentation agents. Other participants included Wells Fargo Bank National Association, Regions Bank, Bank of America N.A., PNC Bank National Association, The Bank of Nova Scotia, U.S. Bank National Association, Fifth Third Bank and Ohio Banking Corp.
Inland Real Estate Buys Two Minnesota Centers for $46.6M
Inland Real Estate Corp. acquired two retail centers in the Minneapolis area for $46.6 million, excluding closing costs and adjustments.
Through its joint venture with PGGM, Inland purchased Silver Lake Village, a 159,303-sq.-ft. grocery-anchored community center in St. Anthony for $36.3 million. Cub Foods anchors the property. Other tenants include Applebee’s, Chipotle, Caribou Coffee and RadioShack. In addition, Wal-Mart has a 144,046-sq.-ft. ground lease at the property. Silver Lake Village is approximately 94 percent leased. Upon the closing of the sale, the joint venture buyers will assume a restructured $20 million loan on the center.
In addition, Inland bought Woodbury Commons, a 116,197-sq.-ft. community center in Woodbury, for $10.3 million. Current tenants at the property include Outback Steakhouse, Applebee’s, Hancock Fabrics, Payless Shoe Source and Sally Beauty Supply. A Wal-Mart store serves as a shadow anchor. Inland already signed a lease with a new anchor tenant that will bring occupancy at Woodbury Commons to 100 percent.
“These two acquisitions exemplify our strategy of acquiring high-quality assets in the best infill locations within our primary markets,” said Scott Carr, president of property management with Inland Real Estate Corp. “Both of these centers offer significant upside potential through a targeted leasing program that will fill vacancies through our existing relationships with tenants already in the [Inland] portfolio. In addition, these assets were acquired in an off-market transaction sourced from a local developer with whom we have an established relationship.”
CBRE Helps Refinance Buckhead Place in Atlanta With $50M Loan
CBRE arranged a $50 million permanent loan on behalf of Buckhead Place LLC for Buckhead Place, a mixed-use development in Atlanta. The center contains 137,181 sq. ft. of retail space, including Marshall’s and LA Fitness.
The loan features a sub-4 percent interest rate. Nationwide Life Insurance Co. provided the financing. William Tyler negotiated this transaction.
George Smith Partners Arranges $25M in Loans for California Shopping Center
George Smith Partners arranged two permanent loans totaling $25 million on behalf of Upside Investments L.P. for Carriage Square Shopping Center, a 173,000-sq.-ft. retail center in Oxnard, Calif. The loans replace an existing construction loan that allowed Upside Investments to redevelop the property.
The new loans include a $21 million credit tenant lease financing and a $4 million life company forward commitment. They were funded by two different lenders. The $21 million credit tenant lease financing was provided for a new Lowe’s store. An investment bank funded the loan. It features a 20-year term, a 20.5-year amortization schedule and a 1.01 debt coverage ratio.
A life company provided the $4 million loan. The loan features a 10-year term, a 30-year amortization schedule and a 50 percent LTV.
Carriage Square Shopping Center was completed in the 1960s. Starting in 2010, Upside Investments razed most of the original structure, repositioned the center’s small shop space, added new space and created a 151,000-sq.-ft. retail pad for new tenant Lowe’s.