Ramco-Gershenson Properties Trust closed on a new $31.3 million CMBS loan with J.P. Morgan secured by its West Oaks II shopping center in Novi, Mi., and its Spring Meadows Place center in Holland, Ohio. The $31.3 million financing represents a loan to value of approximately 60 percent for the two properties and has a 10-year term with a fixed interest rate of 6.5 percent. Proceeds from the loan were used primarily to reduce borrowings on the company's revolving credit facilities.
"This loan is one of the first CMBS transactions to be completed this year and highlights that long-term, attractively-priced capital is available for quality assets in strong markets,” said Dennis Gershenson, President and CEO. “This new financing will improve our flexibility in executing our 2010 business plan.”
DDR Prices $300M of Senior Unsecured Notes
Developers Diversified Realty Corp. announced the pricing of $300 million of senior unsecured notes in an underwritten public offering. The offering consists of $300 million of 7.50 percent notes due April 2017. The notes are being offered to investors at a price of 99.995 percent with a yield to maturity of 7.5 percent. Interest on the notes will be paid semi-annually on October 1 and April 1. The offering is expected to close on or about March 19, 2010, subject to customary closing conditions.
The net proceeds to the company, after subtracting the underwriting discount and estimated offering expenses, are expected to be approximately $296.8 million, which the Company intends to use to repay debt with shorter-term maturities and to reduce balances on the company’s revolving credit facilities.
Banc of America Securities LLC, Deutsche Bank Securities Inc. and UBS Securities LLC are serving as joint book-running managers; Citigroup Global Markets Inc., Goldman, Sachs & Co., J.P. Morgan Securities Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities, LLC are serving as senior co-managers; and BNY Mellon Capital Markets, LLC, Daiwa Securities America Inc., ING Financial Markets LLC, Morgan Keegan & Co. Inc., PNC Capital Markets LLC, RBS Securities Inc. and Scotia Capital (USA) Inc. are serving as co-managers for the offering.
Retail Opportunity Investment Corp. Buys Washington Shopping Center
Retail Opportunity Investments Corp. closed on the purchase of the 74,130-square-foot Market at Lake Stevens located in Lake Stevens, Wash., for $16.2 million in cash.
The shopping center is anchored by Haggen Food & Pharmacy and located in an area with over 96,000 people within a five mile radius with an average household income of approximately $79,000.
Since October 2009, ROIC has acquired five Shopping Centers aggregating almost 450,000 square feet at a cost of approximately $66 million.
Regency Centers Acquires Center in Charlotte
Regency Centers along with its co-investment partner purchased the 191,301-square-foot Providence Commons neighborhood center in Charlotte, N.C., from Providence Road West Development Co.
The class-A shopping center is anchored by a 50,240-square-foot Harris Teeter, along with a 120,487-square-foot Lowe’s Home Improvement and an 8,640-square-foot Rite-Aid. Providence Commons will be Regency’s third shopping center in the Charlotte market.