Urban Magic

National Real Estate Investor
by Stan Luxenberg
Last updated: May 2005
www.nreionline.com

Also active in the urban development market, GMAC Commercial Mortgage is able to make loans at below-market rates because of the federal tax credits. GMAC recently provided a $65 million mortgage to Steadfast Cos., the developer that is renovating the Everett Mall in Everett , Wash. Located in an area of moderate-income and poor households, the mall declined as retailers moved to suburban locations. But since the renovation, the mall is 75% occupied. Steadfast Cos. plans to spruce up the surroundings and hopes to bring in new tenants, including a Borders bookstore and Bed Bath & Beyond. Steadfast Cos. could take on the project because of the subsidized loan, and after the mall has been stabilized, Steadfast Cos. may sell it or refinance with conventional debt.

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