GMAC awards $1.3 billion loan to AOL Time Warner Center

The New York-based AOL Time Warner Center development team has closed a $1.3 billion loan, which is the largest construction loan for private development in U.S. history. Horsham, Pa.-based GMAC Commercial Mortgage Corp., the commercial lender that claimed the No. 1 spot in NREI's 2001 Top Lender Survey, provided the loan.

The total estimated cost of the AOL Time Warner Center complex, located at Columbus Circle in New York City, is $1.7 billion and is being financed by a number of private sources.

Funds for the acquisition of the land were provided by five sources, including Apollo Real Estate Advisors, the Related Companies, the Mandarin Oriental Hotel Group, GMAC Commercial and I.P., an AOL Time Warner financing vehicle.

The mixed-use project consists of over 2.1 million sq. ft. and includes new facilities for AOL Time Warner, a new home for Jazz at Lincoln Center, a five-star Mandarin Oriental Hotel, 191 luxury condominiums known as One Central Park and the Palladium at AOL Time Warner Center, which will be a specialty retail complex.

Mills Corp. gets $280 million in financing for two malls

The Mills Corp. of Arlington, Va., a retail REIT, has received $280 million in financing for two retail shopping malls.

Midland Loan Services, a division of Pittsburgh-based PNC Real Estate Finance, was selected as servicer for the $280 million commercial mortgage-backed securities (CMBS) transaction secured by the two malls: Potomac Mills in Woodbridge, Va., and Gurnee Mills in Gurnee, Ill.

Potomac Mills contains more than 1.6 million sq. ft. leased to 18 anchor stores and 189 specialty retailers. Gurnee Mills includes approximately 1.7 million sq. ft. leased to 12 anchor stores and 187 specialty retailers.

Duke Realty Corp. sells off 22 retail properties in Midwest

SSC Properties, an affiliate of the Don M. Casto Organization, a real estate investment firm based in Columbus, Ohio, has purchased a 22-property, 1.7 million sq. ft. Midwest regional retail portfolio from Indianapolis-based Duke Realty Corp.

The Investment Services Group of Northbrook, Ill.-based Grubb & Ellis represented Duke Realty in the transaction. Financial details of the transaction were not disclosed.

Starwood Capital and Nomura Real Estate acquire Tokyo office

Starwood Capital Group Global, Greenwich, Conn., and Tokyo-based Nomura Real Estate Development Co. have acquired a 151,327 sq. ft. office building in Tokyo.

The property is valued at approximately $46 million. The building was purchased with non-recourse financing provided by Sakura Bank (now Sumitomo Mitsui Bank).

“We believe that this acquisition further demonstrates the strong progress the venture is making in implementing its investment strategy,” according to Ken Munkacy, who serves as the managing director of Starwood Asia Holdings.

CSG, Prudential team to spend $250 million on industrial sites

Baltimore-based Creaney & Smith Group (CSG) and Newark, N.J.-based Prudential Real Estate Investors have formed a $250 million real estate investment fund to develop, acquire and renovate industrial properties throughout the Mid-Atlantic region. Washington, D.C.-based Spaulding & Slye Colliers and Colliers Apogee, New York, arranged the fund formation.

CSG Industrial Partners, CSG's affiliate in the joint venture, will handle the acquisition of properties. The fund's initial investments include two planned bulk warehouse buildings totaling 505,000 sq. ft. at Marley Neck Industrial Park in suburban Baltimore, and a seven-building office/flex portfolio in Columbia, Md. The fund will be fully invested within 18 to 36 months.

Lend Lease lands $185 million in financing for three malls

New York-based Lend Lease Real Estate Investments has secured $185 million in financing on behalf of its Prime Property Fund for a first mortgage on three malls: Fox Run Mall in Newington, N.H.; Westland Shopping Center in Westland, Mich.; and Rosedale Shopping Center in Roseville, Minn. Deutsche Banc Alex. Brown, New York, underwrote the financing transaction.

The acquisition makes NorthMarq Capital, which arranged loans of $3.6 billion in 2000, the second largest commercial mortgage firm in Dallas. The company has a loan-servicing portfolio of $9.1 billion. Askew/Reese arranged $630 million in loan transactions in 2000 and has a servicing portfolio of $475 million.

Harbor Group buys Hickory Ridge Apartments in Memphis.

Harbor Group International (HGI), Norfolk, Va., has acquired the 378-unit Hickory Ridge apartment complex in Memphis, Tenn., for $12 million. HGI bought the property from Denver-based AIMCO, an apartment REIT.

HGI plans to change the complex's name to Waterstone Landing Apartments. The property, built in 1972, includes 52 two-story buildings on 36 acres of land. In addition, the complex features a private lake, two swimming pools, a fitness center, a clubroom and four tennis courts.

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