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ELIZABETH, NJ-N.J. Metromall Urban Renewal Inc., Glimcher Gardens LLC and JG Mezzanine LLC, wholly owned subsidiaries of Columbus, OH-based Glimcher Realty Trust, have secured a mortgage loan refinancing on their Jersey Gardens Mall here. The new debt consists of a $135 million non-recourse senior note at an interest rate of LIBOR plus 1.97%, resulting in an initial interest rate of 3.81% and a $30 million non-recourse subordinated note at an interest rate of LIBOR plus 8.19%, or an initial interest rate of 10.03%

The effective rate for the combined loans of $165 million is LIBOR plus 3.1%, according to a Glimcher spokesman, or an initial rate of about 4.94%. Both notes have an initial maturity date of June 9, 2004, and include three one-year extensions. The senior note requires payment of interest only, and the subordinated note requires amortization of principal based on an approximately 25-year schedule.

The proceeds of the financing are being utilized to repay a maturing $162 million construction loan, according to the spokesman. Deutsche Bank Securities acted as the financial advisor to Glimcher.

Jersey Gardens Mall, which opened in the fall of 1999 just off the New Jersey Turnpike near Newark International Airport, is a 1.3 million-sf regional shopping center whose tenant roster is heavily dominated by outlet and off-price retailers. The complex, which sits in an urban enterprise zone where sales taxes are half the normal 6%, was built on a brownfield site originally owned and remediated by OENJ Cherokee and subsequently sold to Glimcher for redevelopment. OENJ Cherokee still owns a portion of its original tract, on which it proposes to build a major office complex.

The mall is anchored by Filene’s Basement, Neiman Marcus Last Call, Off 5th-Saks Fifth Avenue Outlet, a Marshall’s Megastore, Bed Bath & Beyond, Daffy’s, DSW Shoe Warehouse and Loews Theatres. Other tenants include Burlington Coat Factory, Pfaltzgraff Factory Store, Kenneth Cole, Atlantic Book Warehouse, Ann Taylor Loft, Old Navy and Mikasa and Banana Republic factory stores.

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