CBRE arranged $40.4 million in debt financing for four multi-tenant retail centers located in metro Phoenix and Las Vegas.
Bruce Francis, Dana Summers, Robert Ybarra, Shaun Moothart and Doug Birrell of CBRE, Debt & Structured Finance arranged the 10-year loan and full-term interest-only for the borrower, an institutional client of CenterSquare Investment Management. The loan includes the ability for the borrower to add, release or substitute properties to the portfolio over the next 12-18 months.
“The facility allowed the borrower to increase or decrease loan proceeds over the term of the loan, and add, substitute or release properties, giving the borrower maximum flexibility to execute their business plan,” said CBRE’s Bruce Francis.
The Metro Phoenix properties include Shoppes at Rogers Ranch, located at the northeast corner of 51st Avenue and Baseline Road in Laveen, Ariz., and Lake Pleasant Crossing, located at 25101 & 25225 N. Lake Pleasant Parkway and 9710 W. Happy Valley Road in Peoria, Ariz. The Las Vegas properties are Blue Diamond Marketplace, located at 8030-8180 Blue Diamond Road in Las Vegas and Cannery Corner, located at 2520-2760 E. Craig Road in Las Vegas.
“In an environment where there is an abundance of concern over the current state of the retail industry, we were pleased we were able to secure accretive financing to allow for the borrower to execute on their long-term business plan,” said CBRE’s Shaun Moothart. “Our team worked seamlessly through a multi-stage year-long process. Initially, we secured financing for each individual center on a one-by-one basis. As the portfolio approached a scale that we felt would be attractive to the institutional debt markets, we went back out to market to secure this large portfolio loan facility which allows the borrower to increase the loan amount up to $150,000,000+/- as additional properties are added to the pool and allowed the borrower to release and substitute properties.”
“CenterSquare is very pleased with the execution by the CBRE team on behalf of our client,” said Jeffrey Reder with CenterSquare. “This debt financing achieved the objectives we had laid out with our client when we initiated this specific retail investment strategy in these two target markets one year ago. We truly appreciate the effort and of course the results. With this debt financing now in place, CenterSquare looks forward to continuing our work with the CBRE team to efficiently finance future acquisitions and rapidly grow the portfolio for our client.”
The four retail centers are ideally situated in areas with strong demographics and high traffic counts. Collectively, the properties total 185,687 square feet and feature a diverse mix of national and regional tenants. The four properties averaged 95 percent occupancy at the time of funding.