Question-and-Answer Session
Operator
(Operator instructions) The first question comes from the line of Todd Thomas – Keybanc Capital Markets.
Todd Thomas – Keybanc Capital Markets
Can you provide some detail around the five floating rate loans you are currently negotiating that mature in 2010? What do the lenders want in consideration for extending or fixing these loans?
Dan Sink
I think as we progress through these we are right now in the appraisal phase on a couple of the loans but I can kind of go through. Ridge Plaza which we talked about putting a 7-year loan on right now the lenders are looking at LIBOR plus 325 and a fixed rate of 6.5-6.75% is what we are looking at to swap out that lease for a 7-year period. I think in general if you look at Ridge Plaza and South Elgin they are looking at 70-75% LTV and a majority of that is with in-place NOI so we are having a lot of discussions. We have a couple of letters of intent and we are moving down and progressing well on finalizing particularly Cobblestone in the next several weeks. We should have some more clarity on those.
I think as we have talked about in the past, our objective is to negotiate these out, stagger the maturities. In 2013, 2014 and 2015 we have very little debt maturing. We want to push these particular five loans out into those years so that we stagger the maturities and end up with a more balanced maturity schedule.
Todd Thomas – Keybanc Capital Markets
River’s Edge or Ridge Plaza?
Dan Sink
Ridge Plaza we anticipate placing debt on that on a 7-year loan, taking the proceeds from that loan and paying off Tarpon Springs. So I think when you look at that I am just giving you some color. Really at this point if we are successful completing the Ridge Plaza financing we will use those proceeds to pay off Tarpon Springs which will again take us down to four expiring loans versus the five.
Todd Thomas – Keybanc Capital Markets
Are you expecting to have to pay down any of the loans separately I guess with equity?
Dan Sink
I think we are anticipating that as we put together our capital plan. Even back when we raised equity in May we anticipated paying down anywhere from 10-25% of the loans as additional equity to entice the banks to move the maturity dates out. I think if you look at South Elgin we right now have a term sheet that requires about a 14% equity requirement which would get the extension out to 2013. The rate on that particular loan right now is all in rate of 5.25. It has a LIBOR plus 325 with basically a 2% floor. We are anticipating in our objective to keep it around 10% but we are anticipating on our capital plan to be between 10-25%.
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