The Houston-based REIT will carry the mortgage through 2006, requiring monthly payments and 9% interest. The disposition is part of a capital recycling strategy that brought the sale of four shopping centers. The company has lowered its debt by more than $11.7 million in debt as a result and repurchased 400,000 shares. It also has reinvested in newly developed shopping centers. The UIRT portfolio still consists of 25 neighborhood and community shopping centers and another with a 50% stake.

UIRT also has extended the maturity of its revolving credit agreement with Well Fargo Bank to July 31. The interest rate on outstanding borrowing, totaling about $20.3 million, is set at 175 points in excess of selected LIBOR rates. "Extending the maturity of the revolving credit agreement allows us to retain a high level of financial flexibility while we continue to evaluate our strategic alternatives," says UIRT's chairman and CEO Robert Scharar.