Subsequent Events

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Events

Pursuant to FASB ASC Topic 855, Subsequent Events, the Company evaluated subsequent events and transactions that occurred after the June 30, 2012 consolidated balance sheet date for potential recognition or disclosure in its consolidated financial statements.

On July 18, 2012, the Company announced that it entered into an agreement to sell a 15-property portfolio to an affiliate of Blackstone Real Estate Partners VII for total consideration of $321.0 million. Closing of the transaction occurred on July 25, 2012. As a result of entering into this agreement, the Company recognized an impairment loss of $18.0 million in the second quarter of 2012, as discussed in note 6. The Company will retain a $47.5 million preferred equity investment in the entity that owns the portfolio, which will earn an annual preferred return of 10.5%. This preferred investment cannot be redeemed prior to the 12-month anniversary of the closing date. Following the 12-month anniversary, Regency may call for the redemption of its preferred investment in whole or in part. Following the 18-month anniversary, either Regency or Blackstone may initiate the redemption of Regency’s preferred investment, in whole or in part. Regency will not provide leasing or management services for the Portfolio after closing.

Subsequent to quarter end, Regency used proceeds from the portfolio transaction to repay the $150.0 million funded balance on its $250.0 million unsecured term loan and $120.0 million on its $600.0 million unsecured line of credit. Additionally, the Company retained its option to draw the remaining $100.0 million on its term loan and extended, by six months, the expiration of this option to January 11, 2013. No additional fees were incurred to effectuate this extension.