TUCSON-The 700,000-sf Foothills Mall deal is the first to come out of the chute from a joint venture agreement between Kimco Realty Corp. and Feldman Mall Properties Inc.
The New Hyde Park, NY-based Kimco last fall bought Feldman stock to fuel the JV. "We announced when Kimco took FMP stock that this would be one of the strategic results," Larry Feldman, chairman and CEO of the Great Neck NY-based REIT, tells GlobeSt.com. "This is hopefully one of many deals we hope to do with Kimco in the future."
Kimco will fund a $17-million bridge loan for Feldman, who is selling a minority interest in the $104-million asset at 7401 N. La Cholla Blvd. "This is a temporary way of funding cash into the deal, but at the actual closing, they'll pay off the bridge loan from a $25-million refinance, which will occur in May," Feldman explains.
Feldman will retain leasing, management and construction oversight with its $7.2-million equity investment. According to the REIT's top executive, the refi funds will be applied to corporate needs and acquisitions.
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