CDK Infuses RED With $200M For Retail Centers

KANSAS CITY, MO-Dallas-based CDK Realty Advisors has agreed to provide RED Development LLC, based here, with $200 million to help with current and future retail projects. The mall developer will use the money to gain favorable financing for seven centers that are opening in the next two years, as well as a cash infusion for future projects, says a RED spokesman. The fund will include a 50-50 joint venture for fuiture development projects, with CDK providing the equity necessary to obtain construction financing.

The investor already has been partnering on projects with RED, which has more than 30 centers open, in development or under construction, totaling more than 19 million sf. “This is a way for them to get involved in even more projects,” the spokesman tells GlobeSt.com. “Financing is drying up for everyone, loans are very hard to come by. Many other developers are hunkering down and putting projects on ice. This allows us to go out to more financial institutions and get attractive rates, and we can keep marching forward regardless of the market conditions.”

Out of the seven pipeline projects, the sites this year expected to come online include the Fulton Ranch Towne Center and the Promenade at Fulton Ranch, both in Chandler, AZ, and Promenade at Chenal in Little Rock, AR. For 2009, CDK is helping fund the 600,000-sf Adam’s Derry Landing in Blue Springs, MO and the 550,000-sf Summit Fair in Lee’s Summit, MO. Opening in 2010, the 300,000-sf Paseo Lindo in Chandler and Cityscape in Downtown Phoenix, a 2.5-million-sf multi-use project, will also both benefit from the CDK fund.

The spokesman says it’s true that since the economy is down, that tenants have slowed their expansion plans at new retail centers. However, this cash infusion will keep RED going until that turns around, he says. “We believe that the market is cyclical, that this is a temporary downturn. By the time these projects come online, tenants will want to be there, and we will be in great shape to capture the full market share,” the spokesman says.