CARMEL, IN—Kite Realty Group Trust has closed on an $18.4 millionloan for its Rangeline Crossing redevelopment here.
Construction has commenced on the project, which is approximately 90 percent pre-leased or committed. Earth Fare will anchor the 84,000-square-foot project. In addition to Earth Fare, the center will feature prominent national and regional tenants including Walgreens, Old National Bank, Panera Bread, and Verizon Wireless.
The construction loan was financed by Associated Bank and has a two-year term with an option to extend for an additional three years. The first phase of the project is scheduled to open in fourth quarter of 2012. John Kite, the company’s chairman and CEO, said in a statement that he’s seeing significant demand from high-quality tenants for the project.
In February 2011, Kite Realty completed the acquisition from joint venture partners of the remaining 40 percent interest in Rangeline Crossing, formerly known as the Centre, a consolidated redevelopment property. The purchase price of the 40% interest was $2.2 million, including the settlement of $600,000 loan previously made by the company.
Kite assumed alland management responsibilities of the property, according to a company filing in the second quarter 2012. In the filing, the company said the total estimated costs of this project are expected to be $15.5 million.