New York City-based DRA Advisors paid $174 million for a 90 percent stake in the Triangle Town Center and Commons in Raleigh, North Carolina, restructuring $171 million of assumed debt in the process.
Part of the LB-UBS 2006-C1 CMBS transaction, originated in by UBS in December of 2015, the loan’s interest rate was reduced from 5.737 percent to 4.0 percent, with interest-only payments.
The joint venture acquired the $1.4 million sq ft, two-story shopping center from an existing 50/50 joint venture between CBL & Associates Properties and The Richard E. Jacobs Group. CBL retains a 10 percent stake in the property and is responsible for leasing and management.
“The restructure of the existing loan provides the venture with favorable borrowing terms and the flexibility to move forward and unlock the center’s potential,” said Stephen Lebovitz, CBL’s president and CEO, in a statement.
The modified loan had an initial three-year term (maturing in December 2018) and two one-year extension options available for a final maturity date of December 2020.
CBL owns, holds interests in or manages 147 properties — including 91 regional malls/open-air centers — in 30 states totalling 84.7 million sq ft, according to the statement. DRA Advisors has $6.8 billion of assets under management and has, as of December 31, 2015, invested in properties valued in excess of $23.5 billion.