(Read more on the debt and equitymarkets.)

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

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The 10-year interest-only loan was provided by JP Morgan Chaseand was closed at a fixed rate of 6.01%. The financing replaced anexisting $105 million loan provided 2.5 years ago. CBRE/Melodysenior director Mark Fisher arranged the financing on behalf ofproperty Kane Realty Corp. The loan was completed in cooperationwith Bryan Kane, a locally based mortgage broker.

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"Although there was a significant prepayment penalty, this loanrepresents a significant opportunity to take advantage of lowerrates and the increased value of the property over the past fewyears," Fisher tells GlobeSt.com.

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

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Major tenants in the lifestyle center include a 160,000-sfTarget, JC Penney and Regal Cinema, among others. The center ispart of a larger Kane development that includes the 80,000-sfLassiter shopping center, the 40,000-sf Alexan shopping center, the297-unit Alexan at North Hills apartments, the 49-unit Lassitercondominium, the 229-room Renaissance Hotel and several otheroutparcels and structures. Kane is also developing the 50-acreNorth Hills East, a mixed-use project that will feature office,retail, apartments and senior housing.

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

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