BEVERLY HILLS, CA-Vornado Realty Trust of Paramus, NJ has acquired a 50% interest in the 322,000-sf Beverly Connection shopping center in a transaction in which Vornado paid $10.7 million to a venture of New York City-based Apollo Real Estate Advisors and Calabasas-based Westrust. In addition, Vornado provided the venture with $35 million in preferred equity and a three-year first mortgage of $59.5 million.
The venture of Vornado, Apollo and Westrust intends to redevelop the property and add retail, residential condominiums and assisted living facilities, subject to governmental approvals.
The property, which is across the street from the Beverly Center regional mall, includes a parking structure of 1,538 spaces and is anchored by a Ralph's Supermarket, Old Navy and Sports Chalet. In addition to providing the venture with the $35 million in preferred equity, which yields 13.5% for up to a three-year term, Vornado will provide up to anadditional $35 million of preferred equity if requested by the venture. The $59.5-million mortgage, which is due in February 2006, bears interest at 8.1%.
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