CAMP HILL, PA-Port Washington, NY-based Cedar Shopping Centers Inc. obtained a construction loan facility aggregating $49.5 million from Citizens Bank of Pennsylvania for the redevelopment of Camp Hill Shopping Center. Cedar acquired the asset, which is located on approximately 44 acres at the intersection of Rte. 15 and Trindle Rd., for in excess of $18 million in November 2002 with plans for its redevelopment. Thomas B. Richey, Cedar's VP of development and construction, tells GlobeSt.com it is "de-malling the whole property, turning it from an enclosed center into a strip center with three sides."

The funding includes refinancing $14 million of a first-mortgage acquisition loan from the same lender, which is now amended to conform to the terms of the new loan facility. The $35.5 balance of the funding is allocated as follows, according to Cedar executives.

A $25.5-million portion is for construction of a 91,000-sf Giant supermarket and a 40,000-sf orthopedic center along with the reconfiguration of inline retail space, all of which are under existing leases. Another $7.6 million is for new tenant space, including a proposed fitness facility, and $2.5 million is allocated for potential additional construction costs.

The loan is for a three-year term at a floating interest rate based on one-month Libor plus 185 basis points. It can be prepaid at any time without penalty. Cedar and Cedar Shopping Centers Partnership LP guarantee 20% of the aggregate principal.

In de-malling, Richey says, the original 523,000-sf center will result in a 500,000-sf property, "but gain more leasable space by losing a lot of the original common area." The exact increase in leasable sf was not readily available. Phase I, renovation of the front section of the center, he says, is complete. Phase II is development of the Giant unit, which will replace an existing 42,000-sf Giant store, and the medical outparcel. Uses for Phase III, "the rear 20%," he says, are yet to be determined. Among the potential occupants, he confirms, is a 60,000-sf Regal Cinema.