$6 Mil Financing Will Help Acquire Shopping Centers

HACKENSACK, NJ-SWH Funding Corp., a private lender based here, has teamed up with Spectrum Origination, an affiliate to New York-based Spectrum Group Management, to arrange $6 million in financing for Cedar Income Fund Partnership. The latter is an operating partnership of Cedar Income Fund, a Port Washington, NY-based REIT.

The package will provide a portion of the funds necessary to complete the acquisition of three shopping centers by Cedar Income Fund. The total purchase price for the three centers, two in Philadelphia and one in Sewell, NJ is approximately $35 million. SWH/Spectrum’s investment is secured with a first mortgage on an 80,000-sf office/flex building in Jacksonville, FL that is also owned by Cedar.

All of the assets involved are described by SWH president Sanford S. Herrick as needing “intensive management. Given the food and drug anchor tenants of the shopping centers and the fact that the office building has a federal government lease for half of the structure, we project that their value will increase over time.”

SWH has also taken a subordinated equity interest in the entities purchasing the three shopping centers. Neither the shopping centers nor the Florida office building were identified.