RALEIGH, NC-The 576,583-sf North Hills Lifestyle Center on Six Forks Road has received $141.15 million in refinancing. The center's locally based owner, Kane Realty Corp., has earmarked some of the funds for future development.

The 10-year interest-only loan was provided by JP Morgan Chase and was closed at a fixed rate of 6.01%. The financing replaced an existing $105 million loan provided 2.5 years ago. CBRE/Melody senior director Mark Fisher arranged the financing on behalf of property Kane Realty Corp. The loan was completed in cooperation with Bryan Kane, a locally based mortgage broker.

"Although there was a significant prepayment penalty, this loan represents a significant opportunity to take advantage of lower rates and the increased value of the property over the past few years," Fisher tells GlobeSt.com.

Kane Realty Corp. acquired the center in 2001 for $16 million with plans to redevelop it into an urban village town center with retail, apartments and office space. The development includes 13 buildings with ground-floor retail in some areas and second- and third-story office space in others.

Major tenants in the lifestyle center include a 160,000-sf Target, JC Penney and Regal Cinema, among others. The center is part of a larger Kane development that includes the 80,000-sf Lassiter shopping center, the 40,000-sf Alexan shopping center, the 297-unit Alexan at North Hills apartments, the 49-unit Lassiter condominium, the 229-room Renaissance Hotel and several other outparcels and structures. Kane is also developing the 50-acre North Hills East, a mixed-use project that will feature office, retail, apartments and senior housing.

After paying off the existing $105-million loan, Kane Realty Corp. will use proceeds of the new financing for future development efforts. "The capital markets were willing to lend more than they were 2.5 years ago," Fisher says.