RREEF amends, restates $100 million revolving line of credit

By Wendy Van Sickle

Columbus, Ohio, Feb. 2 – RREEF Property Trust, Inc. said wholly owned subsidiary RREEF Property Operating Partnership, LP entered into an amended and restated agreement providing for a line of credit with an initial maximum capacity of $100 million on Jan. 27, according to an 8-K filing with the Securities and Exchange Commission.

The revolver is expandable to up to $250 million. Wells Fargo Bank, NA is the administrative agent.

Interest is SOFR plus a spread of 200 basis points to 225 bps, depending on the debt yield.

The line of credit matures on Feb. 28, 2025, after which the borrowers will have no right to extend the term.

At any time, the borrowing capacity is based on the least of an amount equal to 65% of the aggregate value of the properties in the collateral pool as determined by lender appraisals; an amount that results in a minimum debt yield of 10% based on the in-place net operating income of the collateral pool; or the maximum capacity.

Proceeds may be used to fund acquisitions, redeem shares pursuant to the company’s redemption plan and for any other corporate purpose.

At the closing date, the outstanding balance was $87.8 million and the weighted average interest rate was 6.31%.

RREEF is a continuously offered, non-traded, publicly registered real estate investment trust based in New York.

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