Urban Edge Properties has completed 16 individual, non-recourse mortgage financings totaling $663 million.
The new mortgages have a weighted average interest rate of four percent with a weighted average term to maturity of 10 years. Proceeds were used to defease and prepay the company’s $544 million, 4.2 percent mortgage cross-collateralized by 39 assets scheduled to mature in 2020.
The company generated $80 million of additional cash proceeds net of all refinancing costs, it said in a statement. It now has a liquid balance sheet with $460 million of cash, a $600 million undrawn line of credit and approximately $1.5 billion in unencumbered asset value.
Holliday Fenoglio Fowler, L.P. brokered the transactions, secured by 15 Class A retail properties and one industrial property totaling 4.6 million square feet in New York and New Jersey.
The loans were made by two CMBS lenders, three life company lenders and one bank and included 14 fixed- and two floating-rate facilities with terms ranging from seven to 13 years.
The portfolio comprises 98.1-percent-leased retail centers anchored by grocery stores, including ShopRite, Stop & Shop and Aldi; Home Depot; Lowe’s; Costco; BJ’s Wholesale Club and Walmart in addition to one multi-tenant warehouse property in East Hanover, New Jersey.
The HFF debt placement team representing the borrower included managing director Scott Aiese and senior managing directors Jon Mikula and Mike Tepedino.
“This retail financing proves that the capital markets remain highly liquid for assets in dense markets operated by best-in-class sponsorship,” Aiese said.
“As lenders remain focused on diversifying their portfolios by asset type and geography, HFF experienced significant interest in the 15 retail term loan opportunities.”
