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RICHMOND HEIGHTS, OH-Associated Estates Realty Corp. has completed the refinancing of $132.2 million in loans on five properties in Florida and Maryland and repaid debt on three properties in Florida and Ohio. As a result, it has reduced annual interest costs by approximately $1.1 million.

The interest rate on the new loans is fixed at 6.09% for seven-year terms, compared to average interest rates of approximately 7.5% on the either defeased or prepaid aggregate of the previous eight loans. In an August presentation to Wall Street analysts, Jeffrey Friedman, president and CEO, identified continued strengthening of the balance sheet by restructuring and reducing debt among the this suburban Cleveland-based multifamily REIT's 2006 objectives.

Proceeds of the refinancing were used were used for three purposes. They allowed for the defeasance of existing mortgages on five properties in Florida and Maryland with an aggregate principal balance of $67.6 million. They also allowed the company to prepay, in full, $54.6 million of debt on three other properties located in Florida and Ohio. The remaining approximately $10 million in proceeds funded the costs associated with defeasance and for other general corporate purposes.