Real Estate Investment Trust UDR Inc. (UDR) recently obtained a $200 million secured credit facility originated by Red Mortgage Capital Inc., a premier Fannie Mae (FNM) lender.
The credit facility is collateralized by five geographically diverse properties, permits collateral substitutions and is non-recourse in nature. UDR will use the proceeds to repay bulk of its secured debt, including certain yield maintenance fees due in 2010. Consequently, only $10 million of secured debt will be left to mature in 2010.
UDR owns, operates, acquires, develops and renovates middle-market apartment communities across the U.S. Although it has assets across the country, the exposure is significant in the Western and Mid-Atlantic US.
In 2008, UDR had upgraded the overall quality of its portfolio by selling assets in smaller markets and replacing them with newer assets in better long-term markets. At the end of June 30 this year, it had ownership interests in 44,701 apartment units, including 1,916 units under development and an additional 289 units under contract for development.
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