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HAGERSTOWN, MD-Financing to the tune of $90 million has closed for Valley Mall, a 900,000-sf enclosed regional shopping center. The Philadelphia-headquartered Pennsylvania Real Estate Investment Trust employed the funds to pay down part of its credit facility, to fund new pursuits and to finance other general corporate purposes. As of February 2005, the company had $500 million available under the facility, $271 million of which was outstanding.
The funding came in the form of a 10-year fixed-rate mortgage loan from Eurohypo AG. The property has a current assessed value of approximately $64.5 million, according to Maryland real estate records.
"By placing long-term debt on this property, PREIT has increased its available capacity under the credit facility," PREIT CFO Robert McCadden explains. "As a result, PREIT will have additional financial flexibility to fund the capital requirements of our announced projects and to pursue additional growth initiatives."
Valley Mall occupies a 66-acre parcel at the intersection of I-81 and I-70. The shopping center opened its doors in 1974, and underwent renovation 1995, followed by an expansion in 1999 that resulted in the addition of new anchor spaces, a food court and an additional 40,000 sf of small shops. Today, Valley Mall features four anchor stores--Bon-Ton, JC Penney, the 14-screen RC Theater and Sears. According to a report released when PREIT announced its acquisition of Johnstown, PA's Crown America Realty Trust in 2003, JC Penney's lease was scheduled to expire in 2009, Bon Ton's in 2014 and RC Theater's in 2020.
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