Mid-Atlantic Portfolio Fetches $540 Million
A large portfolio of retail and office properties located in North Carolina has fetched $540.8 million.
Last week, a joint venture between CBL & Associates Properties (NYSE: CBL) and the Teachers’ Retirement System of the State of Illinois acquired the Friendly Center and The Shops at Friendly Center in Greensboro, N.C. plus six nearby office buildings in Green Valley Office Park and Renaissance Center in Durham.
CBL also will acquire a 100% interest in a portfolio of eight community centers located in Greensboro and High Point, N.C., and twelve office buildings located in Greensboro and Raleigh, N.C. and Newport News, Va.
The portfolio will be acquired from the Starmount Co., a private real estate owner, operator and developer. Gerard Mason of investment sales brokerage Savills Granite represented Starmount on the large deal.
The transaction should generate roughly $0.03 per share of funds from operations (FFO) for the first 12 months following the transaction close. The plan, however, is not to hold this portfolio for long: CBL intends to market the wholly owned portfolio of community centers and office buildings for disposition and use the proceeds to pay down outstanding balances on the term and bridge loans.
The joint venture will assume roughly $81.6 million of non-recourse, long-term fixed debt at a weighted average interest rate of 5.77%.
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© 2008 Penton Media Inc.
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