Boston, MA 09/09/2014 (wallstreetpr) – Real estate investment trust company, Ramco-Gershenson Properties Trust (NYSE:RPT) disclosed that it has purchased a property in Colorado. The company also said that it has struck a deal with NYL Investors, LLC, for long-term unsecured financing.
Buys Property
Ramco-Gershenson has purchased Front Range Village in Fort Collins of Colorado for $128.3 million. It included about 810,000 square feet, of which 460,000 square feet owned by it, according to a statement from Ramco-Gershenson Properties Trust (NYSE:RPT). The acquisition was funded with the borrowings and cash from its revolving credit facilities.
The property was anchored by several retail companies such as Staples, Cost Plus World Market, DSW, Sprout’s Market apart from specialty retailers like Pure Barre, Learning Express, Charming Charlie, Panera Bread and Spice & Tea Exchange.
The property also included 78,000 square feet of space leased to several tenants like CA Technologies and Microsoft Corporation (NASDAQ:MSFT). Besides, the center is a home for the Fort Collins Public Library’s Southeast Branch that attracts 366,000 visitors every year.
Third Asset In Colorado
The latest acquisition of Front Range Village is the third asset in Colorado for Ramco-Gershenson Properties Trust (NYSE:RPT). The property, which has big retailers in the fast growing market, would be accretive initially and offers the prospect of creating further value through the development of a maximum of 100,000 square feet of retail space.
The property is advantageously located as it serves an extensive area of upper-middle income trade where average household income was $86K. The population base was 125K and is predicted to witness 8% growth in the next five-year period. Ramco-Gershenson Properties Trust (NYSE:RPT)’s Chief Executive Officer, Dennis Gershenson, said that it could fund the purchase through debt private placement at a competitive interest rate.
Unsecured Financing
Ramco-Gershenson said that it reached a deal with NYL Investors, LLC, for the private placement of $100 million senior unsecured notes. While $50 million of notes would have a ten-year term with interest rate of 4.16%, the other $50 million of notes would have a twelve-year term with interest rate of 4.3%. Ramco-Gershenson Properties Trust (NYSE:RPT) expects to close the private placement on November 4.
