(For more retail coverage, click GlobeSt.com/RETAIL.)
CHATTANOOGA-In a move to pay off outstanding balances, locally based CBL & Associates has completed two refinancings totaling $202 million. The funds were secured by two malls, the Hamilton Place Mall here and the Greenbrier Mall in Chesapeake, VA.
CBL entered into a $117-million, 10-year non-recourse loan secured by the Hamilton Place Mall with a fixed interest rate of 5.86%. The loan was provided by Principal Real Estate Corp., Katie Reinsmidt, director of Investor Relations, tells GlobeSt.com. The deal replaces a $60.6-million loan, which carried an interest rate of 7% and was slated to mature in March 2007.
In the second financing transaction, CBL used the Greenbrier Mall to secure an $85-million, 10-year, non-recourse loan with a fixed interest rate of 5.9%. The loan was provided by Lehman Brothers, according to Reinsmidt. The loan replaces a $92.65-million term loan, which carried an interest rate of 100 basis points over Libor and was slated to mature in April 2007.
CBL expects to use the proceeds from the Hamilton Place Mall transaction to pay the remaining balance of the Greenbrier Mall term loan as well as outstanding balances on the company's line of credit, CBL explains in a statement. It adds that, as a result of the early extinguishment of the loans, the company will incur a one-time charge of approximately $630,000 for prepayment fees and the write-off of unamortized deferred financing costs, which will be included in the GAAP Net Income and FFO in the third quarter.
Hamilton Place Mall is located on Interstate 75 at Shallowford Road. It comprises nearly 1.07 million sf and anchor tenants are Dillard's, JC Penney, Parisian, Belk for Men, Kids and Home, Belk for Women, and Sears. The retail asset also includes more than 160 specialty stores and is the part of the more than 200-acre retail complex that includes the Shoppes at Hamilton Place, Hamilton Crossing, Hamilton Corner and the Terrace.
Greenbrier Mall is located a Interstate 64 and Greenbrier Parkway South in Southern Virginia. It comprises nearly 890,000 sf and anchor tenants are Dillard's, Hecht's, JC Penney and Sears. The 160,00-sf Dillard's opened in April 2004 and the 105,000-sf JC Penney opened in spring 2005. The enclosed, two-level regional shopping center also includes more than 120 specialty stores. A multimillion-dollar renovation project was recently completely at the retail asset.
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