Wellsford Real Properties Acquires $353-Mil Credit Facility

NEW YORK CITY-Wellsford/Whitehall Group LLC, an affiliate of Wellsford Real Properties Inc., has acquired a three-year, $353-million credit facility with initial funding of $273 million, excluding transaction costs. The balance will be available to fund capital expenditures and when certain operating results have been achieved from several office properties.

Interests in 24 office buildings in northern New Jersey, Boston and Baltimore/Washington, DC secure the facility, which replaces one that was due to mature this December. It had a balance of $203 million prior to its repayment, along with financings of two properties with an aggregate outstanding balance of $36 million.

Terms of the new facility include interest at LIBOR plus 2.9% per year, and an initial June 2004 maturity with options for two 12-month extensions, subject to certain operating and valuation covenants.