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Developers Diversified Realty Offers $400 Million Commercial Mtge Deal

By Anusha Shrivastava, Of DOW JONES NEWSWIRES

NEW YORK-(Dow Jones)- Property owner Developers Diversified Realty Corp. (DDR) is in the market with a much anticipated commercial mortgage-backed securities deal.

The bond, dubbed 2009-DDR1, is eligible for financing under the Federal Reserve's program to boost the commercial mortgage-backed market and is the first newly created CMBS deal in more than a year.

Earlier this month, the Cleveland, Ohio-based developer said it had closed on a new first mortgage financing from an affiliate of Goldman Sachs Group Inc. ( GS). The five-year loan is secured by 28 shopping centers.

Goldman Sachs is lead manager on the deal, which has three tranches. The largest is a triple-A rated tranche worth $323.5 million, with a duration of 4.69 years.

The deal is being marketed in time for the next round of financing under the Fed's Term Asset-Backed Securities Loan Facility, or TALF. The deadline for cheap loans to buy new and existing CMBS is Nov. 17.

-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227; anusha.shrivastava@ dowjones.com

  (END) Dow Jones Newswires
  11-09-091006ET
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