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Sources of Financing
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Sources of Financing Realty Income (760-741-2111) is offering funding for individual property investments from $300,000 to $10 million and portfolios valued at $10 million to $100 million. The company’s lending portfolio includes retail chains in 23 industries, including apparel, automotive parts and service, book store, business service, childcare, convenience store, consumer electronics, craft and novelty, drug store, entertainment, general merchandise, grocery store, health and fitness, home furnishing and improvement, office supply, pet supply and service, private education, restaurant, shoe store, theater and video rental. ShopKo Stores Inc. (920-429-4186) closed on a $50 million private placement mortgage financing. The transaction funds the retirement of five lease liabilities associated with closed stores, provides additional liquidity and adds a layer of longer-term debt to the company’s capital structure. The mortgage financing has a term of 10 years and will be secured by 13 ShopKo stores and one distribution center. After funding the lease terminations, the remaining proceeds were applied toward debt outstanding under the company’s senior secured revolving credit facility. The company operates 366 discount stores in 23 states.Kramont Realty Trust (610-825-7100) entered into a $18.5 million revolving line of credit with GMAC Commercial Mortgage Corp. The term of the line expires on August 31, 2003, which is the maturity date of the company’s current $155 million credit facility. The facility will be used for acquisitions, capital expenditures and general corporate purposes. The agreement calls for an interest rate of the greater of 7%, or one month LIBOR plus 375 basis points.Spencer Savings Bank (973-772-5222) closed a $5.8 million loan on the Downtown at Roseland, an unanchored retail property in Roseland, NJ. The 95% occupied property is located at the intersection of Eisenhower Parkway and Eagle Rock Avenue. The loan originated from Curran/Kauffman Mortgage Associates. The borrower received a 10-year fixed rate loan. Edwards Bankers International Holdings (727-906-9702) is offering commercial real estate loans for almost all property types. The company is offering rates from 5%, with 10-year terms and 25-year amortization. Financing programs can be designed to fit borrowers requirements. The minimum loan amount is $5 million.
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