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Phillips Edison Grocery Center REIT I Arranges $195 Million in 14 Secured Mortgage Loans

October 31, 2017

Phillips Edison Grocery Center REIT I Arranges $195 Million in 14 Secured Mortgage Loans

October 31, 2017 | James Sprow | Blue Vault

Bagged Grocery Produce Items on a Wooden Plank

On October 23, 2017, 14 subsidiaries of Phillips Edison Grocery Center Operating Partnership I, L.P. (“PECO I OP”), and The Guardian Life Insurance Company of America, entered into 14 separate ten-year secured mortgage loans totaling $195 million. The Guardian Facility matures on November 1, 2027, and has a fixed interest rate of 3.52%. PECO I OP has the right to have the subsidiaries prepay in full, but not in part, the outstanding principal balance of the Guardian Facility at any time after November 30, 2020. The prepayment of the Guardian Facility, however, requires the payment of a prepayment premium equal to the greater of (i) 1.00% of the amount of principal outstanding, and (ii) the present value of all interest payable on the principal amount of the loan through the maturity date. The 14 loans are cross-defaulted and cross-collateralized through second liens on each of the properties. The Guardian Facility also requires PECO I OP to execute certain customary non-recourse carve-out guarantees and environmental indemnitees.

Phillips Edison Grocery Center REIT I, Inc. is a public nontraded REIT that owned 158 retail properties as of June 30, 2017. Top tenants include Kroger (40), Publix Super Markets (32), Albertsons (13) and Ahold Nederland B.V. (10). 

 

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Blue Vault Nontraded REIT and Nontraded BDC Reviews
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