Glimcher Realty Trust has closed on a 10-year, $42.1 million mortgage loan secured by Ashland Town Center, located in Ashland, Ken. The new loan, which Glimcher says is to be sold into the commercial mortgage-backed securities market, has a fixed interest rate of 4.9% and was originated by Goldman Sachs Commercial Mortgage Capital LP.
Loan proceeds were used to retire the $22.1 million of secured mortgage debt that had an interest rate of 7.25% per annum and was scheduled to mature in November. The company incurred a charge of approximately $700,000 associated with the defeasance of the previous mortgage loan. The company used the remainder of the loan proceeds to reduce the outstanding borrowings on the company's credit facility.
"These favorable terms show that debt capital is clearly focused on dominant assets with solid sales productivity and stable net operating income regardless of market size," says Mark E. Yale, Glimcher's executive vice president and chief financial officer.
