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RALEIGH, NC-Led by Raleigh developer John M. Kane of Kane Realty Corp., the redeveloper of the former North Hills Mall here into the North Hills lifestyle center has closed on a $105-million non-recourse first mortgage lien for the 572,140-sf development. The development is located at the intersection of Six Forks Road and Interstate 440.The lender, Dallas-based Archon Financial provided an initial funding of $90 million in the form of a 10-year, fixed-rate loan. The borrower may elect to earn-out up to an additional $15 million in spring 2005 contingent upon the subject's leasing activity. At $105 million, the loan-to-value ratio would be 80%. In addition to the earn-out, the loan includes two years of interest-only payments. The transaction was sourced by Shippen Browne, of Capital Advisors in Charlotte.The North Hills Mall was originally developed in 1965 as an enclosed mall with JC Penney and Dillard's as its two anchors. Kane Realty acquired the mall four years ago and demolished the existing improvements except for the JC Penney and associated structured parking and reconstructed in its place an 11-building lifestyle center. In-line shops make up over 200,000 sf and feature mostly national or regional tenants. In addition to JC Penney, anchor tenants include Movies at North Hills 14, Gold's Gym and Target (a ghost anchor that is not part of the subject collateral). The office portion of the collateral is presently 50% leased and is in build-out.