The $104.5-million purchase price for Ivanhoe Cambridge's interest in the center consists of $60.2 million of cash and $44.3 million of beneficial interest in debt attributable to this interest. The cap rate for the transaction is 6.4%, based on projected 2005 net operating income.
Additionally, Taubman paid off a $20-million note to Ivanhoe Cambridge at closing. This note, which was part of the initial equity investment in the project and could not be paid off until November, carried an interest rate of 13%.
Taubman also reports Robb & Stucky will open a 120,000-sf furniture and design studio showroom at the center in early 2005. The new store will occupy the entire first level and part of the second level of the Lord & Taylor space. Plans also include an additional 20,000 sf of specialty shop space on the second level with retailers to be announced.
Ivanhoe Cambridge had been a partner in International Plaza since November 1999. "Ivanhoe Cambridge is one of Canada's leading real estate companies," says Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "We have had an excellent relationship with them over the past five years, and we look forward to future partnerships."
International Plaza, located adjacent to Tampa International Airport, is anchored by Neiman Marcus, Lord & Taylor, Dillard's and Nordstrom. The center features over 200 specialty shops and Bay Street at the Plaza, an open-air village of fine restaurants and small boutiques.
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