The 10-year loan from ING Investment Management Co. carries an interest rate that is below 5%. The leverage on the 14-property portfolio is less than 60% and the overall leverage on CalPERS portfolio is closer to 40%, sources tell GlobeSt.com.
Holliday Fenoglio Fowler LP senior managing directors Bill Asbill and Bob Donhauser arranged the financing. Officially, the borrowers were US Retail Partners LLC, USRP Texas LP and CalPERS. USRP and USRP Texas are both CalPERS entities. CalPERS was advised in the transaction by First Washington Realty Inc.
"CalPERS made a strategic decision to modestly increase the overall leverage on its retail portfolio to take advantage of the current low interest rate environment," says Asbill. "For the fixed rate portion of the financing, CalPERS and First Washington Realty selected core assets that would be held long term; however, there was a desire for maximum flexibility in the event that extraordinary sales opportunities surfaced during the loan term.
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