Inland American CP Investment LLC, a wholly owned subsidiary of Inland American Real Estate Trust Inc., has entered into a definitive joint venture with Centro NP Residual Holding LLC on 25 retail shopping centers with a total value of approximately $471 million.
The properties, totaling approximately 4.5 million square feet, are primarily grocery-anchored or necessity-based community shopping centers, located in 13 states, with an average occupancy over 91% as of Sept. 30.
The new joint venture structure provides Inland American with a significant equity stake and certain governance rights in the recapitalized portfolio, in addition to a preferred capital position and a preferred return. Goldman Sachs and J.P. Morgan provided the joint-venture 10-year commercial mortgage-backed securities financing of approximately $310 million secured by 24 properties within the joint venture.
Prior to the close of the joint venture, Inland American had an existing participation on a portion of the prior first-mortgage loan encumbering the 25 retail shopping centers.