Johnson Capital a national real estate capital advisory firm, announced Don Burnes, Senior Vice President in the company’s Phoenix office has originated a $7.445M loan secured by a retail asset in Chandler.
The property is The Shoppes at Clemente Ranch, a 34,133 SF retail center, shadow-anchored by a Fry’s Food & Drug Store, located on the southwest corner of Alma School Rd. and Germann Rd. At closing the property was just under 90% leased to a variety of tenants, many of whom have been in the subject center for a number of years. Zell Commercial Real Estate Services leases and manages the property.
The amount of the new ten-year fixed-rate loan represented approximately 72% of the purchase price. The non-recourse debt has two years of interest-only payments followed by a 30-year amortization schedule. Johnson Capital was able to procure the loan through a CMBS lender. The interest rate on the loan is in the mid 4% range.
Mr. Burnes’ client is a real estate investment group based in the San Jose, CA area. This is the thirteenth financing transaction, totaling nearly $100 million, which Mr. Burnes has completed for principals of the investment group.
Commenting on the transaction, Mr. Burnes noted that, “There were some moving parts to the transaction having to do with a prospective new tenant for some of the currently vacant space. The tenant’s commitment to the space was not fully documented by the time the loan needed to close, but we were able to get both the lender and borrower to agree to loan terms despite the fact that the tenant had not yet signed its lease.”