X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WILLOW GROVE, PA-Pennsylvania Real Estate Investment Trust completed the previously announced refinancing of Willow Grove Park with a $160-million first mortgage. The Philadelphia-based retail REIT will use a portion of the proceeds to repay the previous mortgage on the property, repay a portion of the amount outstanding on its credit facility and for general corporate purposes.

The new loan has an interest rate of 5.65% and matures in December 2015. The previous mortgage had a balance of $107.5 million and an interest rate of 8.39%. Lenders of the new loan are Prudential Insurance Co. and Teachers Insurance and Annuity Association.

Under the terms and certain conditions, PREIT can convert the loan to a senior unsecured loan. “Converting it to a corporate loan, rather than a mortgage on the property, would leave more income tied to properties that are unencumbered,” Andrew Ioannou, PREIT’s VP of capital markets, tells GlobeSt.com. “This is beneficial if we were to try to pursue an investment-grade rating, because rating companies look at income from properties that are unencumbered.”

Willow Grove, at 2500 Mooreland Ave., has current anchors Bloomingdale’s, Macy’s, Strawbridge’s and Sears. Regarding recent retailer mergers, “there is no conflict between the Bloomingdale’s and Macy’s units, and they will stay intact,” Cheryl Dougherty, VP of marketing, tells GlobeSt.com. “Strawbridge’s will convert to something new, and we’re waiting to hear,” she says. “We’re very excited about it; it enables us to bring something new to the space. Coach, J. Crew and Banana Republic –stores people really want to shop in,” are among the newer tenants in the center, Dougherty says. The center was totally renovated in 2001 and is currently 92% occupied.

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?

Dig Deeper

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.