Crown American Closes on $53.3-Mil Mall Refinancing

JOHNSTOWN, PA-Mall REIT Crown American Realty Trust has closed a $53.3-million loan secured by a 607,873-sf regional shopping center asset located in Harrisburg, PA. The lender is Morgan Stanley.

The mortgage is secured by Capital City mall, a 607,873-sf regional facility located at 3506 Capital City Mall Dr. in Camp Hill, a suburb of Harrisburg, Pennsylvania’s state capital. The bulk of the proceeds from the loan, $42.5 million, are being used to prepay an existing mortgage on Capital City that includes a $4.1 million yield maintenance prepayment penalty. The penalty, along with $20,000 in deferred financing charges, will go on the REIT’s balance sheet as an “extraordinary loss” this month. The loan closed Jan. 3

The remaining cash, less $1.7 million for closing expenses and various loan reserves, adds up to $9.1 million in net proceeds for the company. Crown American president and CEO Mark E. Pasquerilla says the mall refinancing “provides the company with improved financial liquidity as we enter 2002.”