Developers Diversified Realty Corp. obtained new first mortgage financing from Goldman Sachs Commercial Mortgage Capital. The $400 million, five-year loan is secured by a portfolio of 28 stabilized shopping centers. The company and Goldman Sachs are continuing to work with the Federal Reserve to make the newly-originated loan eligible for the Term Asset-Backed Securities Loan Facility. Proceeds from the financing will be used to repay existing debt on certain properties in the portfolio, to repay other first mortgage debt with near-term maturities and to reduce amounts outstanding on the company's revolving credit facilities.
AMB Property Corp. refinanced its $325 million senior unsecured term loan facility, which was set to mature in September 2010, replacing it with a $345 million facility, maturing October 2012. The facility was modified to include Euro and Yen tranches, with both the multi-currency and the U.S. dollar components currently priced at 275 basis points over the applicable LIBOR index. The terms also include an option to increase the facility to $425 million at any time prior to October 2011. J.P. Morgan Securities Inc. and Sumitomo Mitsui Banking Corp. were the lead arrangers and book managers.
ProLogis closed on $52.5 million of secured financings for its ProLogis California Fund. The seven-year, secured financing is with a major life insurance company. The financing has a 6.6% interest rate, a loan-to-value of approximately 50% and is secured by 11 industrial properties in the LA Basin. The proceeds were used to refinance outstanding debt, and with this refinancing, the fund has addressed debt maturities into 2014.
Morgans Hotel Group Co. agreed to a 15-month extension with one of its lenders that holds, among other loans, the mezzanine loan on the company's Hudson Hotel property in New York City. The Hudson mezzanine loan was to mature on July 12, 2010. The mezzanine lender has agreed to forbear until Oct. 12, 2013, from exercising any remedies resulting from a maturity default, subject only to maintaining certain interest rate caps and making cash payments within the control of MHG. As part of the agreement, the outstanding balance of the Hudson mezzanine loan has been decreased from $32.5 million to $26.5 million. The mezzanine lender also has agreed to cooperate with MHG in its efforts to seek an extension of the $217 million Hudson mortgage loan, which is also set to mature on July 12, 2010, and to consent to certain refinancings and other modifications of the Hudson mortgage loan.
Arbor Commercial Funding funded an $18 million loan under the Fannie Mae DUS loan product line for the 198-unit complex known as
Saucon View Apartments in Bethlehem, PA. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.06%.
Arbor Commercial Funding funded a $5.46 million loan under the Fannie Mae DUS loan product line for the 257-unit complex known as
Windemere Apartments in Houston, TX. 10-year loan amortizes on a 30-year schedule and carries a note rate of 6.05%.
Arbor Commercial Funding funded a $5.19 million loan under the Fannie Mae DUS loan product line to refinance the 100-unit complex known as
Huntington Cove Townhomes in Farmers Branch, TX. The 10-year loan amortizes on a 30-year schedule and carries a note rate of 5.98%.
Century Properties Fund XIV obtained a second mortgage loan of $3.125 million on Sun River Village Apartments, a 334-unit apartment complex in Tempe, AZ. The mortgage bears interest at a fixed interest rate of 6.92% per annum and requires monthly payments of principal and interest of approximately $21,000, beginning Dec. 1 through the June 1, 2021 maturity date, at which time a balloon payment of approximately $2.578 million is due. The loan also includes modifications on the existing first mortgage. The modification includes a fixed interest rate of 7.42% per annum and monthly payments of principal and interest of approximately $52,000, commencing Dec. 1 through the maturity date of June 1, 2021, at which time a balloon payment of approximately $6.233 million is due.
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