CBL & Associates Properties Inc. closed the extension and modification of its $560 million credit facility, maintaining 100% lending capacity. The facility was scheduled to mature in August 2011 (assuming exercise of the remaining extension option) and has been extended to April 2014. The extended facility is currently partially secured and will be converted to a fully secured facility over the new term. The conversion includes drawing available amounts under the facility to retire property-specific mortgage loans as they mature. The unencumbered properties will then be used as collateral to secure the credit facility. The extension and modification agreement calls for amounts outstanding under the $560 million new secured facility to bear interest at an annual rate equal to one-month, three-month, or six-month LIBOR (at the company's option) plus a spread that increases over the facility's term, commencing with a spread of 75 to 120 basis points (depending upon CBL's leverage ratio) through August 2010, a spread of 145 to 190 basis points through August 2011 and increasing thereafter to 325 to 425 basis points until maturity, with LIBOR subject to a minimum of 1.50%, beginning December 31, 2009.
National Retail Properties Inc. closed a new $400 million credit facility, replacing its existing $400 million credit facility which was set to mature in May 2010. The new facility matures November 2012, with an option to extend maturity to November 2013. The facility is priced at LIBOR plus 280 basis points with a 1% LIBOR floor. The new facility also includes an accordion feature to increase the facility size to $500 million. National Retail Properties has no outstanding borrowings under its existing credit facility. Wells Fargo Securities and Banc of America Securities LLC were joint lead arrangers of this credit facility.
NorthStar Realty Finance Corp. completed a three year renewal and restructuring of its $374 million credit facility with Wachovia Bank. The maturity date of the credit facility was extended for three years to Oct. 28, 2012. The interest rate will be LIBOR plus 350 basis points. There are no restrictions on dividends and all margin call provisions have been eliminated as long as semi-annual reductions to the credit facility are met. The credit facility provides for $300 million of additional borrowing capacity as the amount outstanding under the credit facility is reduced below $300 million, on a dollar-for-dollar basis. The company issued Wachovia 1 million warrants at a weighted average strike price of $8.59 per share. And at least two of the following executive officers of the company are required to remain an officer or director of the company during the term of the credit facility: David Hamamoto (chairman and CEO); Andrew Richardson (CFO); Daniel Gilbert (CIO) and Albert Tylis (executive vice president and general counsel).
Inland Western Retail Real Estate Trust Inc. closed on the refinancing of $140 million of mortgage loans with a major life insurance company. Secured by seven retail properties having mortgages due to mature in 2009 and 2010, the new mortgage loan has a five-year term inclusive of a one-year extension option.
Tishman Speyer Office Fund agreed to a term sheet with Westdeutsche ImmobilienBank AG for the financing of 300 Park Ave. in New York. The financing is expected to raise $135 million of gross debt against 300 Park, of which TSO's share of net proceeds would be in excess of the $55 million required to be raised as a condition precedent to the US REIT Facility Final Funding. The loan represents a loan to value ratio of 21% as of June 30 and will mature Jan. 8, 2014, coterminous with the existing Prime Plus debt facility.
HFF arranged a $120 million recapitalization for the W Hotel & Residences, a luxury mixed-use project under construction in Austin, TX. Working on behalf of
Stratus Properties Inc. and the
Canyon-Johnson Urban Fund, HFF placed a new five-year construction loan originated by CLG Hedge Fund LLC, a hedge fund affiliated with Beal Bank Nevada. This loan is replacing an original $165 million construction financing through Corus Bank that HFF secured on behalf of the borrowers in 2008. As part of the recapitalization, Stratus and Canyon-Johnson are also contributing $45 million to the project. Due for completion in December 2010, the W Hotel and Residences will have 252 guest rooms and suites.
HFF secured $100 million in financing for a four-property multi-housing portfolio in Massachusetts, Minnesota and Missouri. Working exclusively on behalf of
RREEF, HFF placed the four loans with Freddie Mac. Three of the loans are part of the Freddie Mac CME program and one is part of the Freddie Mac Capped ARM program. The portfolio totals 1,617 units and has an average occupancy of 95%. Individual property details and loan amounts are as follows.
· Jefferson at Dedham Station, 1000 Presidents Way, Dedham, MA, 300 units, $31.05 million, fixed-rate, 10 years;
· The Gates of Carlson Center, 300 Carlson Parkway, Minnetonka, MN, 435 units, $23.7 million, fixed-rate, 10 years;
· Fountain View on the Plaza, 4800 Oak St., Kansas City, MO, 396 units, $27.48 million, fixed-rate, 7 years; and
· Villages of Bogey Hills, 2200 Lake Court, St. Charles, MO, 486 units, $17.7 million, floating-rate, 7 years.
Forest City Enterprises Inc. closed a $90 million refinancing of 45/75 Sydney Street, a pair of twin office buildings at the company's University Park at MIT mixed-use, science and technology park in Cambridge, MA. The seven-year, fixed-rate refinancing, through two insurance companies, represents approximately a 50% increase in principal over the prior in-place financing, while maintaining strong debt service coverage.
Grubb & Ellis Co. completed its $90 million offering of 900,000 shares of a new issuance of a 12% cumulative participating perpetual convertible preferred stock. The company estimates that the proceeds from the offering were approximately $85 million after deducting estimated offering expenses and giving effect to the conversion of the $5 million of subordinated debt provided by an affiliate of the company's largest stockholder. The company intends to use the proceeds to repay in full its credit facility at the agreed reduced principal amount equal to approximately 65% of the principal amount outstanding under such facility. The balance of the offering proceeds will be used for general working capital purposes.
Five Guys Holdings Inc., franchisor of Five Guys Burgers and Fries, closed a $30 million loan with GE Capital Franchise Finance -- effectively doubling the size of its credit facility. The new facility is made up of a $5.25 million revolving line of credit and a $24.75 million term loan. Funding was provided through GE Capital Financial Inc.
Comstock Homebuilding Companies Inc. entered into a loan modification with Keybank. The loan modification amends an existing loan with a $22.8 million outstanding principal balance secured by the company's Eclipse condominium project and the company's planned Station View townhouse project. The key terms of the modification increase the cash flow available to Comstock through reduced principal payments as condominium units are settled at the Eclipse project and through the sale of the Station View project land. The modification reduces the curtailment requirement from 100% of net proceeds to 85% of the net sales price of Eclipse condominium units, providing Comstock with cash equal to 15% of the net sales price as each condominium unit is delivered. The loan modification will be applied retroactively to all settlements occurring on or after July 1, 2009, resulting in an immediate cash infusion to Comstock. In exchange for the modified terms, Comstock agreed to adjust the interest rate to the higher of LIBOR plus 5% or the prime rate plus 2% subject to a LIBOR floor of 2%.
NAI Bluestone Real Estate Capital arranged $13.8 million in FHA senior financing through RED Capital Group to refinance Carriage Court of Hilliard, an assisted living facility in Hilliard, OH. The property is owned by Carriage of Court of Hilliard LLC, a subsidiary of
Wilkinson Corp., a national owner/operator of independent living, assisted living and memory care facilities based in Yakima, WA. RED Capital financed the deal through the U.S. Department of Housing and Urban Development's (HUD) Federal Housing Administration's section 232/223(f). The fixed rate, non-recourse loan represents 85% of the loan to value and has a 5.4% interest rate amortized over 35 years.
Legacy Restaurants Group LLC, owners of multiple Wendy's franchise units in Kansas and Missouri, closed a $9.35 million deal with GE Capital Franchise Finance. The loan helps Legacy acquire five new units from another franchisee in Joplin, MO, and refinance existing debt.
HFF arranged an $8 million refinancing for Pax River Office Park, a seven-building, 172,235-square-foot office park in Lexington Park, MD. HFF worked exclusively on behalf of
The Hampshire Cos. to secure the fixed-rate loan through Maryland Bank & Trust Co. Loan proceeds will be used for capital and tenant improvements and leasing commissions.
Arbor Commercial Funding LLC funded a $3.784 million loan under the FHA 223(f) program to refinance a 164-unit complex known as
Crown Gardens in Houston, TX. The 35-year loan amortizes on a 35-year schedule and carries a note rate of 5.50%.
Dockerty Romer & Co., arranged $3.4 million in financing for an unanchored retail strip center at
4400 University Drive in Lauderhill, FL. Non-Recourse financing was arranged through a regional bank with a 6.95% interest rate, 3-year term and a 25-year amortization schedule. The property is a 12-building unanchored strip center, consisting of 120,390 square feet.
Avant Capital Partners closed a bridge loan of $3.3 million for the refinance and renovation of
PPA Group's 200-unit multifamily property in Waco, TX. The loan proceeds enabled the borrower to close with no additional cash out of pocket to capitalize on a discounted payoff offered by the existing lender and provided additional funds for renovations which will help increase the property's NOI. The 12-month interest-only loan was secured through a closely held private equity fund.
Arbor Commercial Funding LLC funded a $3.2 million loan under the Fannie Mae DUS product line to finance the 102-unit complex known as
Marsh Highland Apartments in Carrollton, TX. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.54%.
Llenrock Group closed a $2.5 million line of credit with a regional Delaware Valley community bank on behalf of
Upper Darby Development Associates LLC for the Centre at 7200, an 80,000 square foot office building in Upper Darby, PA. The line of credit will allow the borrower to fund tenant improvements and leasing commissions as they continue leasing the asset towards stabilization.
HFF arranged a $2.1 million refinancing for a free-standing Duane Reade pharmacy in Yonkers, NY. HFF working exclusively on behalf of
The Hampshire Cos. placed the fixed-rate loan with Intervest National Bank.
Thomas D. Wood and Co., a Strategic Alliance Mortgage LLC member, secured financing of $2.08 million for the
Baron Apartments in Southington, CT, through a national multifamily lender. The loan term is 10 years, based on a 30-year amortization and a loan-to-value of 65%. The interest rate is 5.61% The 54-unit apartment complex was built in 1968 and 1969, and is at 191 Queen St.
Download this story and all of the stories in the Watch List Newsletter here. The Adobe pdf version also includes all of this week’s leads of distressed properties and loans of concern, lease cancellations applied for in bankruptcy proceedings, all of the local and national facility closures & layoffs, banks with distressed real estate portfolios and lists of loans approaching their maturity date. Plus the pdf version contains bonus news items not found in these columns or the CoStar Group web news pages.
Receive notice when a new Watch List Newsletter column is published by receiving The Watch List E-Mail Alert. It's the quickest way to link directly to the news and leads you want. Just e-mail me your name, title, company, company business, city, state, and e-mail address. You can reach me by clicking on the byline above or e-mailing me at Mark Heschmeyer