X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORT WASHINGTON, NY-Cedar Shopping Centers–the Port Washington, NY-based shopping center REIT–said on Monday that it received an extension of its $300-million secured revolving credit facility. The credit extension was syndicated by a nine-member group led by Bank of America.

Cedar Shopping Centers owns and operates around 12.1 million square feet of supermarket-anchored shopping centers. Canvassing nine states, the company’s reach extends from Virginia to Massachusetts.

Company CFO Larry Kreider says, in a press release, that Cedar will have no debt obligations maturing until 2010. He added that Cedar anticipates arranging another extension beyond 2010, or a new three-year facility to help finance $228 million in developments that had been put in place this past June and September.

Steven Marks, managing director of REITS at FITCH Ratings in Chicago offered general perspective on Monday’s news, saying the overall state of the commercial debt capital market is not well. “There are other companies, private entities and funds that were formed and [they] bought a lot of assets recently–say [in] 2006 and 2007,” he adds. “Some of those companies have had to liquidate.”

Marks explains, “In general, the state of the commercial debt capital markets is pretty bad, so companies that have near term debt maturities are facing a tougher time.”

He says that “within the last three months in commercial real estate, there’s only been a handful of companies that have had to deal with near term debt maturity.”

The credit extension comes on the heels of the Nov. 3 announcement that a joint venture for 32 properties–between Cedar and German company Homburg Invest Inc.–would not proceed. It was estimated that deal would have provided Cedar with $49 million in net cash proceeds. It was scheduled to close on Dec. 15. Hombug reportedly cited the unprecedented events in the United States and world capital markets as its reason for pulling out of the deal.

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

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.