General Growth Properties Inc. refinanced four malls representing $966 million in new mortgages. The four fixed-rate non-recourse mortgages carry a weighted average term of 9.1 years and a weighted average interest rate of 4.63 percent, compared to the 5.66 percent rate on the maturing loans. After adjusting for GGP’s ownership interest, the company’s pro-rata share of the four mortgages totals $483 million.
The loans include a $450 million mortgage on Natick Mall in Natick, Mass., carrying a 4.6 percent interest rate and a 2019 maturity date; a $200 million mortgage on Galleria at Tyler in Riverside, Calif., carrying a 5.05 percent interest rate and a 2023 maturity date; and a $185 million mortgage on First Colony Mall in Sugar Land, Texas, carrying a 4.50 percent rate and a 2019 maturity rate. In addition, the company closed on a $131 million mortgage on Northbrook Court in Northbrook, Ill., carrying a 4.25 percent rate and a 2021 maturity date.
Year-to-date GGP completed approximately $3.9 billion in new property level non-recourse financings. These mortgages successfully conclude the company’s 2011 financing plan.
“At the start of 2011, one of GGP’s stated goals was to strengthen the company’s balance sheet and liquidity while also reducing interest rates and extending the average debt maturity profile,” said GGP CEO Sandeep Mathrani in a statement. “We have accomplished our 2011 goals and are now focused on 2012 financing opportunities.”
In separate transactions, GGP sold three non-core assets in the past three months for $280 million. The properties included Faneuil Hall Marketplace in Boston, Mass.; the office and garage components of Westlake Center in Seattle, Wash., which sold for $119 million; and Riverside Plaza, a retail strip center in Provo Utah, which sold for $21 million.
Edens & Avant closed on the refinancing of its $350 million unsecured revolving credit facility and $30 million unsecured working capital line. Both the revolving credit facility and the working capital line will mature in September 2014. They come with two one-year extension options.
Wells Fargo Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. acted as joint lead arrangers and joint bookrunners for the unsecured revolving credit facility. Wells Fargo Bank was the administrative agent and Bank of America N.A. the syndication agent.
PNC Bank and Branch Banking & Trust Co. served as co-documentation agents, while Capital One, Deutsche Bank, Regions Bank and U.S. Bank were senior managing agents. Synovus Bank also participated.
PNC Bank provided the working capital line.
Grubb & Ellis Co. entered into exclusive negotiations with a subsidiary of C-III Capital Partners LLC, an affiliate of Island Capital Group LLC, which has partnered with an affiliate of Colony Capital LLC regarding a strategic transaction with the company.
In addition, a C-III affiliate agreed to invest $10 million in Grubb & Ellis through the expansion of the company’s existing $18 million credit facility with Colony Capital and purchase of Colony’s $4 million existing facility. This will establish both C-III and Colony Capital as significant stakeholders in Grubb & Ellis.
“This announcement is very positive for Grubb & Ellis employees, clients and stakeholders,” said Grubb & Ellis Chairman C. Michael Kojaian in a statement. “C-III Capital Partners and Colony Capital are highly regarded multifaceted organizations with deep expertise and involvement in the commercial real estate industry. Partnering with these firms offers significant growth opportunities for Grubb & Ellis.
Phillips Edison—ARC Shopping Center REIT Inc. acquired two shopping centers in the Southeast for $15.2 million. The centers include Southampton Village, a 77,956-square-foot Publix-anchored shopping center in Tyrone, Ga., and Centerpoint, a 72,287-square-foot Publix-anchored shopping center in Easley, S.C.
Both centers were constructed in 2003 and both feature Publix leases running through 2023.
“The acquisition of these two high-quality Publix-anchored centers exemplifies our strategy to grow the portfolio with properties tenanted by leading grocers in markets with solid demographics,” said John Bessey, president of Phillips Edison—ARC Shopping Center REIT Inc., in a statement. “We believe that acquiring well-located grocery-anchored centers at attractive prices will be accretive to shareholder value.”
American Realty Capital New York Recovery REIT Inc. purchased a freestanding fee simple interest in a one-story, 9,767-square-foot building containing a Duane Reade pharmacy in Queens, N.Y. for $14 million, excluding closing costs. The property is 100 percent leased.
NorthMarq arranged a $10 million loan for City Center, a 116,781-square-foot grocery-anchored retail center in Lake Elsinore, Calif. The loan featured a 10-year term and a 30-year amortization schedule. The transaction consolidated two loans into one in a cash-out scenario. The loan was arranged through NorthMarq’s correspondent relationship with Midland National Life Insurance Co.
In a separate transaction, NorthMarq arranged a $2 million for Selma Square, a 27,100-square-foot retail center in Selma, Calif. The loan featured an 18-month term. Office Max anchors the property, which is located in a tertiary market. A private fund served as the lender in the transaction.
MG Properties Group (MGPG) acquired Ocean Village, a 63,000-square-foot mixed-use property in Oceanside, Calif., from 401 PCH Ocean LLC for $11.75 million. The property was completed in 2009 and contains 33 condominiums and approximately 11,000 square feet of retail space. MG plans to invest significant capital into the asset and perform a number of upgrades to make the space more attractive to prospective residential and retail tenants. The acquisition was backed with capital from MGPG’s Private Capital Group, a pool of high net worth investors located primarily in the San Diego region. KeyBank National Association financed the balance of the deal. Mike Bourna, Rob Socci and Paul Caputo, of Voit Real Estate Services, represented the seller in the transaction.
Groveland Associates LLC sold Eagle Ridge Shoppes, a 65,751-square-foot, Publix-anchored shopping center in Groveland, Fla., to Fraga Properties for $9.1 million. The price works out to $138 per square foot. Daniel Molloy, of Marcus & Millichap Real Estate Investment Services, represented the seller in the transaction. Kirk Olson and Drew A. Kristol represented the buyer. The center was completed in 2007 and is currently 80 percent leased. In addition to Publix, tenants at the property include Burger King, Great Clips and Subway.
Marcus & Millichap Real Estate Investment Services negotiated the sale of a Dollar General store in Gatesville, N.C. for $518,166. The transaction closed at a cap rate of 8.95 percent. Peter Snell, Mark Taylor and Dean Zang, of Marcus & Millichap’s Philadelphia, Pa. office, represented the seller in the transaction. James Allen Smith also assisted in the deal.
Plaza Advisors negotiated the sale of Towne Center Plaza, an 82,098-square-foot shopping center in Sanford, Fla. The center was completed in 1998. At the time of the sale it was 100 percent leased to tenants including Jo-Ann Superstore, Books-A-Million, Tuesday Morning and West Marine. Anthony Blanco, Jim Michalak and Lenard Williams, of Plaza Advisors, negotiated this transaction.