RREEF Property unit obtains $75 million revolver via Wells Fargo

By Toni Weeks

San Luis Obispo, Calif., March 11 – RREEF Property Trust, Inc. wholly owned subsidiary RREEF Property Operating Partnership, LP negotiated a revolving loan agreement on March 6 with Wells Fargo Bank, NA as administrative agent and lender, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for up to $75 million of revolving loans, and the amount may be increased quarterly in minimum increments of $25 million, up to a total of $150 million of commitments.

The credit facility will be secured by cross-collateralized and cross-defaulted first-mortgage liens and security agreements on real estate assets owned, controlled and managed by RREEF.

Borrowings will bear interest at one-month Libor plus 170 basis points to 190 bps based on the debt yield of the properties. There is also an unused facility fee of 15 bps to 25 bps.

The revolving loans are due and payable in full on March 6, 2018. The maturity date may be extended twice by one year each time.

Borrowings may be prepaid at any time without premium or penalty.

According to the filing, the borrowers drew $43.4 million under the credit facility at closing to repay $42.4 million of borrowings under its existing secured revolving credit facility with Regions Capital Markets as bookrunner and sole lead arranger and Regions Bank as lender and administrative agent. The revolver, which was obtained on May 1, 2013, was terminated on March 6 without any prepayment penalties.

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

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