Newman's disclosure on the financing component of the deal is the first confirmation of the actual price paid for the Osceola County property in this city of 8,000 residents founded by Walt Disney World in 1994. But Newman didn't disclose Lexin's name in its prepared statement.
Lexin and Disney had declined to disclose terms of the deal, as GlobeSt.com previously reported. Lexin did the hush-hush deal in December and closed it Jan. 21, Lexin previously confirmed.
Area brokers familiar with the Celebration property had previously estimated the price of the transaction at $42.3 million. They had estimated the value of the 6.8 acres at $200,000 per acre, or slightly less than $1.4 million.
"Town Center at Celebration is a unique asset that our client was able to acquire at a favorable purchase price," says Jay Rollins, managing director of SPG. "The investment represented a unique opportunity for the borrower to acquire a high-profile, class A asset at an extremely attractive price."
Rollins says "the borrower's strategy of purchasing the property, furthering the stabilization and holding in the short-term was one in which SPG was comfortable lending." Newman is a 25-year-old division of GMAC Commercial Holding Capital Corp., also based in Denver. Lexin is a private investment group headed by Metin Negrin who was also a founding partner and chief operating officer of the Athena Group in New York from 1993 to 2000.
SPG made an initial funding of $18 million, with a hold-back of $1.1 million for future leasing commissions, tenant improvements and reserves. Rollins says the $19.1-million loan "represented a 70% loan to value and provided for 81% of total costs." That would equate to $24 million, a price that previously was not disclosed by Lexin or Disney. Rollins says "the remaining costs were funded by the borrower at closing."
The interest-only, floating-rate loan was priced over 30-day Libor and carries a floor rate. The loan has two extension options, "providing the property meets certain requirements," Rollins says. "The borrower plans to add retail tenants, such as coffee shops, bookstores and pet stores that will appeal both to tourists and the permanent residents of Celebration." Disney chose a buyer which "would give the community diligent attention and preserve Celebration's small-town allure and ambiance," Rollins adds.
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