Under terms of the JV, which the two companies announced in October, RioCan assumes 80% ownership and Cedar 20% ownership of the recently completed Towne Square Plaza in Temple, PA. The two REITs bought the 127,636-square-foot property, which Cedar says is 98% leased, for $19.3 million. Closing is expected in the first quarter of 2010, according to a release from Cedar.
With a tenant roster that includes Giant Food Stores, A.C. Moore, PetSmart, Five Guys Burgers and Super Cuts, Towne Square Plaza is unencumbered, according to releases from the two REITs. The purchase price will be funded by Cedar from its recently-renewed credit facility for stabilized properties, and by RioCan from available cash flow.
In other news, Cedar's $265-million secured revolving credit facility has been expanded to $285 million with a commitment from TD Bank. Cedar CEO Leo Ullman says in a release that the expansion of the facility "will potentially further increase our availability and enhance our ability to expand our portfolio with similar quality properties."
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
