DALLAS-Behringer Harvard has closed on a $500-million secured credit facility on behalf of Behringer Harvard REIT I Inc., and the company's flagship core office real estate investment program. The deal includes a $200-million term loan and a $300-million revolving credit facility, each with a three-year term and a one-year extension option.

KeyBanc Capital Markets and Wachovia Securities were co-lead arrangers on the transaction. Wachovia Bank NA served as syndication agent while Aareal Bank AG and Westdeutsche Immobilienbank AG were co-documentation agents. KeyBank NA will serve as administrative agent for the facility.

"This credit arrangement helps facilitate the closing of the IPC US REIT acquisition and puts our REIT I in an excellent position to continue achieving its strategic goals and growth objectives," says Behringer Harvard founder and CEO Robert M. Behringer. "It also speaks highly of our capital markets group and team of lenders who were able to put together favorable arrangements in the midst of such a volatile credit market."

IPC US REIT is controlled by Toronto-based IPC REIT, the only Canadian real estate investment trust to invest exclusively in US commercial real estate. It owns an 87% interest in IPC (US) Inc. Earlier this fall, GlobeSt.com reported that IPC shareholders overwhelmingly approved a buy-out by Behringer Harvard that includes the sale of IPC US REIT to Everclear Acquisition Corp., a wholly owned subsidiary of the Dallas-based company, for $1.4 billion.

The Canadian REIT has ownership interests in a 35-building, Class A portfolio totaling 9.6 million sf in 20 US markets from Manchester, NH to Las Vegas. Behringer Harvard REIT I's portfolio totals more than $2.5 billion in 37 office buildings and other assets across the US. The acquisition will increase REIT I's presence in some markets and provide entry to others, including New York, New Jersey, Las Vegas and Tampa/St. Petersburg, FL.

"This represents our most significant corporate credit facility to date," says Andrew Bruce, vice president-capital markets for Behringer Harvard. "We especially appreciate the support provided by the members of our bank group and look forward to expanding these financial relationship as we move forward."