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Kite Realty Group Trust (NYSE: KRG) (the “Company”) announced today that it has closed on an $18.4 million construction loan for its Rangeline Crossing redevelopment in Carmel, Indiana (Indianapolis MSA). Construction has commenced on the project, which is approximately 90% pre-leased or committed. Earth Fare will anchor the 84,000 square foot project. In addition to Earth Fare, the center will feature prominent national and regional tenants including Walgreens, Old National Bank, Panera Bread, and Verizon Wireless.
The construction loan was financed by Associated Bank and has a two-year term with an option to extend for an additional three years. The loan bears an interest rate of LIBOR plus 225 basis points, which decreases to LIBOR plus 210 basis points upon extension and achievement of a 1.25x debt service coverage ratio.
“We are pleased to obtain financing for another outstanding re-development opportunity in the Indianapolis area,” said John A. Kite, the Company’s Chairman and Chief Executive Officer. “We are seeing significant demand from high-quality tenants for this project.”
About Kite Realty Group Trust
Kite Realty Group Trust is a full-service, vertically integrated real estate investment trust engaged in the ownership, operation, management, leasing, acquisition, construction, redevelopment and development of neighborhood and community shopping centers in selected markets in the United States. At September 30, 2012, the Company owned interests in a portfolio of 60 operating and redevelopment properties totaling approximately 8.9 million square feet and an additional two properties currently under development totaling 0.6 million square feet.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, performance, transactions or achievements, financial or otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. Risks, uncertainties and other factors that might cause such differences, some of which could be material, include, but are not limited to: national and local economic, business, real estate and other market conditions, particularly in light of the recent slowing of growth in the U.S. economy; financing risks, including the availability of and costs associated with sources of liquidity; the Company’s ability to refinance, or extend the maturity dates of, its indebtedness; the level and volatility of interest rates; the financial stability of tenants, including their ability to pay rent and the risk of tenant bankruptcies; the competitive environment in which the Company operates; acquisition, disposition, development and joint venture risks; property ownership and management risks; the Company’s ability to maintain its status as a real estate investment trust (“REIT”) for federal income tax purposes; potential environmental and other liabilities; impairment in the value of real estate property the Company owns; risks related to the geographical concentration of our properties in Indiana, Florida and Texas; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011, which discuss these and other factors that could adversely affect the Company’s results. The Company undertakes no obligation to publicly update or revise these forward-looking statements (including the FFO and net income estimates), whether as a result of new information, future events or otherwise.