Terranova Closes Over $130M Principal Capital Transactions in Last Year

MIAMI BEACH, Fla., Feb. 27, 2012 /PRNewswire/ -- In a series of debt and equity transactions, Terranova has again opportunistically seized upon an advantageous moment in the capital markets, harvesting equity to request in a sale, refinancing at historically low rates, acquiring notes in a distress opportunity and extending new debt as a lender to acquire purchase option.

"This has been an enormously exciting time of opportunity. We came through this cycle with consistent profits every single year and a strong balance sheet. When the time was right we were poised and ready to strike. We played each slice of the capital market to the best of our ability and have made a series of outstanding deals. While other firms have been licking their wounds on legacy assets, we have moved forward making deal after deal," said Terranova Chairman, Stephen H. Bittel.

Starting with the $52 million acquisition of three prime Lincoln Road assets in joint venture with a publicly traded REIT, a Terranova affiliate continued its investing push into urban high street retail, adding these select properties on Lincoln Road in Miami Beach to a growing portfolio or high performing street front retail locations in South Florida.

The firm's mortgage brokerage division, Terranova Capital, secured the $20 million financing of Paraiso Plaza in July 2011, arranging for its affiliated institutional joint venture, a new first mortgage, encumbering a previously debt free Publix anchored shopping center. Terranova secured long-term fixed rate life insurance company debt on an asset the venture had owned unlevered since it opened for business.

Next was the sale of Parkhill Plaza for $25.45 million, an asset held for just over 10 years, which resulted in a whopping gain of a little more than four times the original purchase price in 2001. Terranova executed a complete renovation of the project and released it bringing in one new tenant after another. The sale to Kimco Realty (NYSE) resulted in significant capital harvest from the investment.

In December 2011, as part of a joint venture with a major distress investor, a Terranova affiliate acquired in an all cash transaction, the debt on an over 500,000-plus sq. ft. shopping center in northern Florida, at a significant discount to the nearly $16 million face amount of the note.

February 2012 brought two transactions: The refinancing of the Suniland Shopping Center in Pinecrest, Fla. for $22.5 million on an asset originally purchased in 1996 for $9.4 million. The debt, arranged once again by Terranova Capital, resulted in a long-term loan at a fixed rate insuring the continued long term cash flow at the property. The transaction involved a new banking relationship that enabled the firm, through a combination of debt and swap transactions, to lock in the lowest long-term fixed rate the firm has ever achieved. Existing debt was retired with significant excess proceeds.

Finally, just two weeks ago, a company affiliate advanced just over $2 million in a loan transaction on a Miami Beach apartment building, that also gave the firm a valuable purchase option to the firm affiliate, for future development opportunity.

"While we continue to deliver market leading management, development and leasing services to our properties, benefitting our partners, clients, and tenants--growing value every day, we are bullish on our ability to select the right opportunities to build our asset base going forward. Our balance sheet has enabled us to move strongly through a challenging time in the markets, profitably growing our team and our portfolio," said Bittel.

The Terranova Chairman further indicated that the firm remains fully loaded and ready for more business with a full pipeline of future transactions as a buyer, note acquirer and lender.

Terranova Corporation, South Florida's leading commercial real estate advisory firm, currently is involved with commercial real estate assets for its clients and its own portfolio valued at nearly $1 billion. The company offers complete commercial real estate services, including asset and property management, leasing, tenant representation, acquisitions dispositions, financing, construction management and development services.

FOR INFORMATION CONTACT:
Valerie Andrade, PR & Marketing
Terranova Corporation
305-779-8929
[email protected]
http://www.terranovacorp.com

SOURCE Terranova Corporation