Phillips Edison's Strategic Investment Fund I Closes $94.5MM in CMBS Financing

CINCINNATI, Feb. 8, 2012 /PRNewswire/ -- Phillips Edison's Strategic Investment Fund I announced today that it has closed two CMBS loans totaling $94.5 million. The new 10-year fixed-rate loans are secured by Bridgewater Falls Shopping Center and Fort Smith Pavilion.

Bridgewater Falls, purchased in 2009, is a 600,000-square-foot regional shopping center in Cincinnati, Ohio, anchored by Target, JCPenney and Dick's Sporting Goods. Fort Smith Pavilion, purchased in 2010, is a 400,000-square-foot regional shopping center in Fort Smith, Arkansas, anchored by Target and Dick's Sporting Goods. Although the assets were purchased in the throes of the most recent real estate downturn, both properties have experienced significant leasing and remerchandising since acquisition, achieving greater than 95% occupancy.

"In this challenging economic environment, these centers attracted national and regional tenants looking to open new locations," noted David Birdsall, senior vice president of Phillips Edison's Strategic Investment Funds. "This is a testament to the fundamentals offered by each center, further evidenced by the strong interest we received in financing these assets on a permanent basis. The loan proceeds allowed Strategic Investment Fund I to return 100% of the investors' capital less than two years following the fund's final capital call. Fund I also owns three additional assets with upside potential in various stages of maturity."

Phillips Edison & Company formed Strategic Investment Fund I in 2007 to capitalize on retail real estate opportunities created by the credit crunch and real estate market downturn. In 2011, having fully invested the $65 million in Fund I, the company formed Strategic Investment Fund II with $57 million which it is currently investing.

Phillips Edison & Company specializes in the acquisition, redevelopment, leasing, and management of grocery-anchored neighborhood and community shopping centers. The company's portfolio includes more than 220 properties, totaling over 25 million square feet in 35 states. The privately owned, fully integrated real estate company has corporate offices in Cincinnati and Salt Lake City, as well as regional offices across the country.

SOURCE Phillips Edison & Company

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