Phillips Edison Closes $94.5M in CMBS loans on Centers in Ohio and Arkansas
Feb 13, 2012 12:12 PM, Staff Reports
Phillips Edison’s Strategic Investment Fund I closed two CMBS loans totaling $94.5 million. The loans are secured by Bridgewater Falls Shopping Center, a 600,000-sq.-ft. shopping center in Cincinnati, Ohio, and Fort Smith Pavilion, a 400,000-sq.-ft. shopping center in Fort Smith Ark. The loans feature fixed interest rates and 10-year terms.
Target, JC Penney and Dick’s Sporting Goods anchor Bridgewater Falls. Target and Dick’s Sporting Goods also anchor Fort Smith. The assets are more than 95 percent occupied.
Phillips Edison formed Strategic Investment Fund I in 2007 to capitalize on retail real estate opportunities created by the credit crunch.
“In this challenging economic environment, these centers attracted national and regional tenants looking to open new locations,” said David Birdsall, the Fund’s senior vice president, in a statement. “This is a testament to the fundamentals offered by each center, further evidenced by the strong interest we received in financing these assets on a permanent basis. The loan proceeds allowed Strategic Investment Fund I to return 100 percent of the investors’ capital less than two years following the fund’s final capital call. Fund I also owns three additional assets with upside potential in various stages of maturity.”
Faris Lee Negotiates Wisconsin Transactions
Prairie Ridge Investors LLC sold Prairie Ridge Commons, a 26,444-sq.-ft. retail center in Pleasant Prairie, Wis., to Repak Pridge Partners LLC for $8.525 million. The transaction closed at a cap rate of 8.23 percent. Tenants at the center include Starbucks Coffee, Panda Express, AT&T and Aspen Dental. Jeff Conover, of Faris Lee Investments, represented both parties in the transaction;
N3 Retail LLC sold a 3,138-sq.-ft. retail property in Kenosha, Wis. to Sunshine Investors for $1.05 million. The transactions closed at a cap rate of 9.37 percent. Tenants at the property include Starbucks Coffee and EZ Money Payday Loan. Jeff Conover, of Faris Lee, represented the seller in the transaction. Mid-America Wisconsin represented the buyer.
Grandbridge Arranges More Than $24M in New Loans
Grandbridge Real Estate Capital originated a $10.3 million, non-recourse permanent loan for Gateway Center, a 76,268-sq.-ft. retail center in Tucson, Ariz. The property is 100 percent leased. Tony Carlson, of Grandbridge, negotiated this transaction;
Grandbridge Real Estate Capital also originated three first mortgages totaling $14.442 million on three Walgreens stores in the New Orleans metro area. All the loans came with a fixed interest rate slightly above 5 percent and a 25-year term. Mikko Erkamaa negotiated these transactions.
TNP Acquires Shopping Center in Texas
TNP Strategic Retail Trust Inc. acquired Woodland West Marketplace, a 176,414-sq.-ft. grocery-anchored shopping center in Arlington, Texas. Tom Thumb Food & Pharmacy anchors the center. The property is 87 percent leased. It was completed in 1968 and redeveloped in 1997.
Other Notable Deals
Wal-Mart Realty sold a 118,000-sq.-ft. in Dover, Del. formerly occupied by Wal-Mart, to BCP LLC for $5.2 million. BCP plans to subdivide the space into four to six smaller sections. KLNB Retail represented the buyer in the transaction.
Credit Union sold a 5,107-sq.-ft. retail building in Temecula, Calif. to First Citizens Bank for $4.1 million. The building was vacant at the time of the sale. Brian Bielatowicz, of Lee & Associates, represented the seller in the transaction. Brent Bohlken, of Grubb & Ellis, represented the buyer.
The Boulder Group negotiated the sale of a 10,908-sq.-ft. single tenant net leased CVS in Bellaire, Texas for $3.6 million. CVS has a seven-year triple net lease for the property. Randy Blankstein and Jimmy Goodman, of The Boulder Group, represented the seller in the transaction. The Boulder Group also negotiated the sale of a 7,920-sq.-ft. single tenant net leased Advance Auto Parts store in Walker, Mich. for $1.385 million. Advance Auto Parts has a 15-year, double net lease on the property. Randy Blankstein and Jimmy Goodman represented both parties in the transaction.
Marabella Commercial Finance Inc. funded a $2.8 million loan for a Walgreens store. The loan features a 6.03 fixed interest rate, a 10-year term and a 25-year amortization schedule. Walgreens has less than 10 years remaining on its initial lease term
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