FARMINGTON HILLS, Mich., Sept. 8, 2014 (GLOBE NEWSWIRE) -- Ramco-Gershenson Properties Trust (NYSE:RPT) (the "Company") today announced that it has acquired Front Range Village in Fort Collins, Colorado for $128.3 million. Front Range Village encompasses approximately 810,000 square feet (460,000 square feet owned by the Company) and is anchored by Target (shadow), Lowe's (shadow), Sprout's Market, DSW, Cost Plus World Market, Staples, Party City, Toys 'R Us/Babies 'R US, and The Sports Authority. Front Range Village also features a number of unique-to-market and specialty retailers including, Sephora, Charming Charlie, Pure Barre, Runner's Roost, Learning Express, Mathnasium, Kay Jewelers, ULTA Beauty, Crazy 8, Claire's, Lane Bryant, Five Guys Burgers and Fries, Spice & Tea Exchange, Qdoba, and Panera Bread. The center includes 78,000 square feet of office space leased to multiple tenants, including Microsoft and CA technologies, and is also home to the Southeast Branch of the Fort Collins Public Library, which draws 366,000 visitors to the shopping center each year. The Company funded the acquisition with cash and borrowings under its revolving line of credit.
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The Company also announced an agreement with NYL Investors, LLC, a wholly-owned subsidiary of New York Life Insurance Company, to issue a $100 million private placement of senior unsecured notes. The financing will consist of $50 million of notes with a ten-year term priced at a fixed interest rate of 4.16% and $50 million of notes with a twelve-year term priced at a fixed interest rate of 4.30%. The sale of these notes is expected to close on November 4, 2014. In addition to the new debt, the balance of the Front Range Village purchase will be funded with proceeds generated from the sale of non-core assets.
"Front Range Village is a very exciting acquisition that features a strong line-up of the nation's top retailers located in a dynamic, rapidly growing market. Front Range Village, our third Colorado asset, is initially accretive and provides the opportunity to create additional value through the development of up to 100,000 square feet of retail space," said Dennis Gershenson, President and Chief Executive Officer. "Further, we were able to secure the funding of this acquisition through private placement debt at very attractive interest rates."
Front Range Village is strategically located on Harmony Road, one mile west of the I-25 Expressway interchange. A number of new developments are underway along Harmony Road, including a new 344,000 square foot hospital and a 25-acre mixed-used project. As part of the greater Denver area, the center serves a substantial upper-middle income trade area with average household incomes of $86,000 within three miles of the center and a population base of 125,000, which is expected to grow 8% over the next five years.
About Ramco-Gershenson Properties Trust
Ramco-Gershenson Properties Trust (NYSE:RPT) is a fully integrated, self-administered, publicly-traded real estate investment trust (REIT) based in Farmington Hills, Michigan. The Company's business is the ownership and management of multi-anchor shopping centers in strategic metropolitan markets throughout the Eastern, Midwestern and Central United States. At June 30, 2014, the Company owned and managed a portfolio of 78 shopping centers and one office building with approximately 15.6 million square feet of gross leasable area owned by the Company or its joint ventures. The properties are located in Michigan, Florida, Ohio, Georgia, Missouri, Colorado, Wisconsin, Illinois, Indiana, New Jersey, Virginia, Maryland, and Tennessee. At June 30, 2014, the Company's core operating portfolio was 95.7% leased. Additional information regarding the Company is available via the corporate website at www.rgpt.com.
This press release may contain forward-looking statements that represent the Company's expectations and projections for the future. Management of Ramco-Gershenson believes the expectations reflected in any forward-looking statements made in this press release are based on reasonable assumptions. Certain factors could occur that might cause actual results to vary, including deterioration in national economic conditions, weakening of real estate markets, decreases in the availability of credit, increases in interest rates, adverse changes in the retail industry, our continuing ability to qualify as a REIT and other factors discussed in the Company's reports filed with the Securities and Exchange Commission.
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