Phillips Edison & Co.'s Strategic Investment Fund I 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.
Meanwhile, Fort Smith Pavilion, bought in 2010, is a 400,000-square-foot regional shopping center in Fort Smith, Arkansas, also anchored by Target and Dick's Sporting Goods.
Both properties have experienced significant leasing and re-merchandising since the 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."
He added that the loan proceeds allowed Strategic Investment Fund I to return 100% of the investors' capital in less than two years after the fund's final capital call. Fund I also owns three added assets with upside potential in different maturity stages.
Phillips Edison formed Strategic Investment Fund I in 2007 to capitalize on retail real estate opportunities created by the credit crisis and real estate market downturn.
In 2011, having fully invested the $65 million in Fund I, the firm formed Strategic Investment Fund II with $57 million that it is currently investing.