February – Briefs/Finance

American Realty Capital Properties to Acquire ARCT III for $2B; WNC Closes $125M Federal LIHTC Fund; CBRE Arranges $212M for Clarion Campus; Manhattan High-Rise Lands $130M Refi; Vornado Completes $120M Refi; Revel Resort Nails Down $150M in Additional Financing; U.S. Bank Lands $52M for Mixed-Income Housing; Walker & Dunlop Provides $64.8M for Gulf Coast M-F.

American Realty Capital Properties to Acquire ARCT III for $2B

American Realty Capital Properties Inc. and American Realty Capital Trust III Inc., two separate net-lease REITs that count investment advisory firm American Realty Capital as their original sponsor, will soon become one. ARCP will acquire ARCT III for $2.2 billion in cash and shares. With completion of the transaction, the merged company will boast an enterprise value of $3 billion.

Terms of the mega-deal call for each outstanding ARCT III share to be converted into shareholders’ right to receive either 0.95 of a share of ARCP common stock valued at a consideration of $12.26, or $12 in cash. ARCP is publicly traded and ARCT III is non-traded, but when all is said and done, the combined entity will hold the distinction of being the fifth-largest publicly listed net lease REIT, with a portfolio of 800 retail and industrial properties accounting for an aggregate 18.9 million square feet across 44 states.

WNC Closes $125M Federal LIHTC Fund

WNC has closed a $124.5 million federal low-income housing tax credit fund that will be invested in 20 affordable housing projects across the United States, as well as a Hawaii state tax credit fund for almost $5 million that will be used for a seniors housing project in Honolulu. The combined funds have a total of 10 investors, equally split between banks and insurance companies, three of which are new to WNC.

CBRE Arranges $212M for Clarion Campus

CBRE Capital Markets has arranged $212 million in financing for Metro Park, a 37-acre, seven-building, 1.5 million-square-foot Class A campus in Alexandria, Va. Clarion Partners owns the asset. The seven-year loan was provided through SunTrust Banks and HSBC Credit Corp. with a 50 percent LTV and a rate of approximately 3 percent. Sited in the Springfield submarket near Fort Belvoir and the National Geospatial Intelligence Agency headquarters, Metro Park is leased to the General Services Administration and some of the nation’s largest federal government contractors.

Manhattan High-Rise Lands $130M Refi

Holliday Fenoglio Fowler L.P. has arranged a $130 million refinancing for The Capitol at Chelsea, a luxury high-rise asset located in Manhattan. The firm worked on behalf of institutional investors advised by J.P. Morgan Asset Management, and placed the seven-year loan with HSBC Bank USA. The 38-story tower is located at 55 W. 26th St. in Manhattan’s Chelsea neighborhood. The 2001-built community features 397 units, 67,329 square feet of retail and office space, and a 140-space parking garage.

Vornado Completes $120M Refi

Vornado Realty Trust has completed a $120 million refinancing of 4 Union Square South, a 206,000-square-foot Manhattan retail property. The seven-year loan bears interest at LIBOR plus 2.15 percent and amortizes on a 30-year schedule beginning in the third year. Net proceeds from the refinancing were approximately $42 million after repaying the existing loan and closing costs.

Revel Resort Nails Down $150M in Additional Financing

Revel AC, the parent company of Revel, the newest resort and casino in Atlantic City, N.J., has completed an amendment to its existing revolving credit facility with JP Morgan Chase Bank N.A. The amendment provides for the addition of a new $125 million term loan and an increase of $25 million in the existing revolving credit facility. Revel AC plans to use the funds to support growth plans at the resort, which include improving the gaming offerings.

U.S. Bank Lands $52M for Mixed-Income Housing

U.S Bank and St. Anton Partners have closed on a $52 million loan that will finance the construction of La Moraga Apartments, a 275-unit mixed-income apartment community located in San Jose, Calif. The asset is one of the first apartment developments in the south San Jose area since 2004. St. Anton Partners has built, owns and manages more than 6,000 units in California. Amenities at the firm’s newest property will include a swimming pool, fitness center with yoga room, Internet café, media and billiards room, outdoor grilling area and neighborhood park frontage.

Walker & Dunlop Provides $64.8M for Gulf Coast M-F

Walker & Dunlop has provided $64.8 million in financing under Freddie Mac’s capital markets execution program for four multi-family properties located along the Gulf Coast. The properties include Retreat at Schillinger, a 270-unit community located in Mobile, Ala.; Baywood Apartments and Cedarwood Apartments, 226-unit sister properties located in Gretna, La.; and Houma Highlands, a 378-unit gated apartment community located in Houma, La.

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