Seller Financing Regains Favor
The Wall Street Journal reports: As shopping-center owner Developers Diversified Realty Corp. negotiates to sell stakes in 13 malls, it has enlisted a deal sweetener that hasn't been used for years: It offered to finance a portion of the purchase price.
Developers Diversified isn't alone. Seller financing, associated mainly with small real-estate transactions, is playing a role in more large deals as capital from traditional sources has become scarce.
The company, based in Beachwood, Ohio, plans to sell a majority stake in 13 shopping centers to an institutional investor for $890 million. Although the company won't say why it turned to seller financing, the market for sales of commercial real estate provides evidence enough: Sales of U.S. retail properties were down by 80% in the third quarter to $3.4 billion from the same period a year earlier, according to Real Capital Analytics.
View the full article on The Wall Street Journal: Seller Financing Regains Favor
Posted by: Nina Turner