X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-New Plan Excel Realty Trust has divested itself of its entire gardenapartment portfolio. Price tag is $380 million.

The buyer is a private investment group including Houlihan-Parnes Realtors LLC and C.L.K. Management Corp. Salomon Smith Barney advised New Plan in the transaction. Roughly $55 million of the gross proceeds from the sale will be used to pay off existing mortgage debt on the garden apartment communities.

Short-term plans for the remaining proceeds are to pay down New Plan’s existing debt. Down the road, leftover cash from the sale will be used to spruce up the REIT’s core shopping-center portfolio, repurchase public equity or debt or in the pursuit of new acquisitions. The portfolio comprises 53 garden-apartment communities, leaving New Plan with roughly 250 properties after the sale.

The only loose end in what appears to be a tightly closed deal is an Alabama-based property, the Club Apartments. The community is currently under contract to be sold separately to the Homewood City Board of Education, Homewood, AL. The sale is slated to close within 30 days, but in the event that it does not go through, the buyer of the portfolio is obligated to purchase the property.

As part of the sale, New Plan has provided the buyer with a $31 million letter of credit for which the REIT will earn a 9% annual fee with a one-point commitment fee. The letter of credit has a three-year term but after 18 months the buyer has the right to terminate or reduce the debt. The buyer can also extend the term for an extra year.

New Plan, a major player in the shopping-center REIT arena, has $2.9 billion in assets and its properties stretch across 31 states with roughly 36 million sf of gross leasable area.

In a separate announcement yesterday, New Mark plans to release its third quarter 2001 results the morning of Thursday, November 8, 2001. A teleconference with the Company’s Chief Executive Officer and President, Glenn J. Rufrano, will be held on that same day at 2 p.m. For details, see the company’s Web site at http://www.newplanexcel.com

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. Apartments 2020Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.