Developers Diversified Realty Corp. (DDR) has originated a $31.7 million mezzanine loan to a subsidiary of EDT Retail Trust (EDT) secured by equity interests in six prime shopping center assets owned by EDT and managed and leased by DDR. The mezzanine loan was funded in conjunction with the origination of a new $142.3 million senior loan secured by first mortgages on these EDT properties.
DDR will continue to lease and manage the assets on behalf of EDT pursuant to the existing management and leasing agreement.
The seven-year mezzanine loan is co-terminus with the senior loan and has a fixed interest rate of 10%. The aggregate loan-to-value ratio for the senior and mezzanine loans is approximately 75%. DDR fully funded the mezzanine loan with the proceeds from the recent sale of DDR common stock.