$85M Financing Deal for Last Stretch of Central Park Development

FREDERICKSBURG, VA-In a complicated arrangement, an affiliate of local developer The Silver Cos. and the Vienna, VA-based The Rappaport Cos. land an $85 million financing package for a 36-property portfolio of retail and office space in the massive 2-million sf Central Park mixed-use development. On behalf of the buyers, New York’s Ackman-Ziff Real Estate Group LLC helped negotiate the re-capitalization package, financed through Greenwich Capital. The deal makes way for the final chapter of the grandiose development endeavor that currently involves a total of 680,000 sf of office and retail space within the 240-acre Central Park, as wells as plans for an additional 400,000 sf of retail offerings. That construction project is expected to come to a close by summer of 2004.

Originally developed by Silver Cos., Central Park is considered the largest “power center” on the East Coast. It occupies a spot where I-95 and Rte.3 meet, and is home to a bevy of national retail draws including Lowes Home Center, Target and Wal-Mart Supercenter. Prior to the securing of financing, Silver Cos. sold a small portion of its ownership involving 80% of Central Park to Rappaport. That transaction leaves Silver with majority ownership, but turns over management and leasing responsibilities for the 680,000-sf section–excluding the new 400,000-sf addition–to Rappaport.