CBL SECURES $298 MILLION IN FINANCING

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CHATTANOOGA, TENN. — Chattanooga retail developer and owner CBL & Associates has secured $298.8 million in financing for five of its shopping centers. The non-recouse loans have a weighted average interest rate of 6.58 percent. One of the loans was for new financing, and the other four were for refinancing existing debt that was due to mature this year.

CBL closed a new $14.8 million loan for The Terrace in Chattanooga. The financing carries a 10-year term and a 7.25 percent fixed interest rate.

A $115 million loan was procured for CoolSprings Galleria in Nashville, Tenn. The financing carries an 8-year term and a 6.98 percent fixed interest rate. It replaced a maturing $126.9 million loan.

CBL closed two 10-year CMBS loans for Burnsville Center in Minneapolis and Parkway Place in Huntsville, Ala. The loan for Burnsville Center totals $83 million and carries a 6 percent interest rate. The loan for Parkway Place, which totals $21 million, represents CBL's 50 percent share in the property. The financing carries a 6.5 percent term.

Finally, CBL closed on a $65 million CMBS loan for Valley View Mall in Roanoke, Va. The expected interest rate will be 6.5 percent.

CBL expects to realize $51.5 million in total net proceeds from the transactions. John Foy, vice chairman and CFO of CBL, said in a statement that these loans, when combined with the REIT's plans to pay off three additional CMBS loans maturing in 2010, will address all of CBL's maturing debt for the year.

— Coleman Wood

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