Since the purchase, Cedar has been able to negotiate letters of intent that would re-tenant a substantial portion of the center, according to SWH. The REIT plans to redevelop the mall, including a vacant 89,000-sf Montgomery Ward unit.
The interest rate of the loan is undisclosed. "Based on the projected amortization payments," SWH reports, "the loan should self-liquidate in 20 months, but there is some flexibility to allow amortization to extend to 31 months."
"We have a lot of confidence in Cedar," says Sanford S. Herrick, an SWH principal. "We've been especially impressed with Cedar's work at The Point, also in Harrisburg, and elsewhere."
In addition to the Point, collateral for the loan includes Academy Plaza and Port Richmond Village in Philadelphia and Washington Center in Sewell, NJ. Cedar acquired that three-property portfolio in 2001. Herrick says the current free cash flow on those properties "is about 20% over original projections, and the equity value has increased." He calls this "a very reassuring indicator of what's likely to happen at the Camp Hill Mall."
SWH is a high-yield lender that provides short-term money for projects. Newbridge was founded in 2001 by former principals of CS First Boston.
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