(For more retail coverage, click GlobeSt.com/RETAIL.)
CAMP HILL, PA-Cedar Shopping Centers has placed a new $65-million first mortgage on Camp Hill Shopping Center. The Port Washington, NY-based REIT acquired the then-enclosed 520,000-sf center for $18.2 million in late 2002 and subsequently redeveloped and de-malled it, as GlobeSt.com reported, with a $49.5-million floating-rate construction loan from Citizens Bank of Pennsylvania.
The new funding will mature on Jan. 1, 2017. It is interest-only for the first five-year period. The interest is 5.5% a year and amortization is on a 30-year schedule beginning in the sixth year. The lender is Kansas City, MO-based KeyBank NA. In addition to retiring the outstanding $40.4 million on its initial loan, Cedar will reduce its variable-rate secured revolving credit facility by $25 million.
A 167,000-sf Boscov's anchors the Camp Hill asset along with a 25,000-sf Barnes & Noble and a 93,000-sf Giant supermarket. The center also contains four banks; two national restaurants; a 42,000-sf LA Fitness facility, which opened this month, and a newly built 41,000-sf medical office building for the Orthopedic Institute of Pennsylvania.
Net income before debt from the property is expected to generate approximately $6 million a year, beginning in 2007, compared with a low of approximately $700,000 when Cedar began redevelopment, according to a statement from Cedar. Completion of the redevelopment "represents a 50% gain, or more than $30 million in value based upon the refinancing of the property," says Tom Richey, Cedar's vice president of development and construction. In the statement, he calls this project "one of our more successful redevelopment projects to date."
In September 2005, when the redevelopment was under way, Leo Ullman, Cedar's CEO, told GlobeSt.com, "We're essentially fully leased." According to Cedar's website, a single, 2,500-sf space remains available.
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