FAIRFIELD, CT—A joint venture of Fairfield County, CT-based Kleban Properties and Regency Centers Corp. of Jacksonville, FL has secured $78.9 million in CMBS debt in conjunction with its $150-million acquisition of a mixed-use portfolio of properties here.

The deals, arranged by Cohen Financial of Chicago, involved five CMBS loan assumptions assumed by various entities, including the newly formed Kleban-Regency joint venture.

“The five CMBS loans were originated between 2005 and 2007 and had several years of remaining term. If the borrower had defeased the CMBS loans, the transaction costs would have been much more expensive than the cost to assume the current debt,” says Deb Schiavo, Cohen Financial's managing director and head of debt advisory services.

Cohen Financial was engaged to facilitate the loan assumption approval process, which required the consent of various loan servicers, bondholders and rating agencies, company officials say.

The closing on the property purchase whereby Regency Centers acquired an 80% stake in the three properties was announced last month. The three properties are the Black Rock Shopping Center, Brick Walk, and Fairfield Center and have of roster of approximately 120 tenants. Retail accounts for approximately 73.5% of revenues from the three centers with the balance consisting of office and professional services.