In Brief: Morgan, Fleet Leading $225M REIT Credit

NEW CANAAN, Conn., - Units of J.P. Morgan & Co. and Fleet Financial Group are leading a $225 million, three-year unsecured credit facility for Avalon Properties Inc., a real estate investment trust headquartered here.

Upon closing, several assets securing Avalon's previous credit facility were released, and now 75% of the company's assets are unencumbered.

Pricing is based on the London interbank offered rate, prime, or CD rate at the company's option. Libor-based pricing can range from 150 to 175 basis points over the base rate, depending on the company's implied ratings from Moody's and Standard & Poor's. Initial pricing is 175 basis points over Libor.

Avalon Properties is an equity REIT in the business of developing, acquiring, and managing multifamily apartment communities in the Middle Atlantic and northeastern portions of the United States.

Avalon owns or holds a stake in 33 stabilized apartment communities containing 10,005 apartments in six states and the District of Columbia. Seven communities with 1,758 apartments are now under construction.