CBRE Secures $19.9 Million in Financing for the Acquisition of Three Retail Centers in Southern California
06 Jul 2020
Los Angeles – CBRE’s Capital Markets’ Debt & Structured Finance team arranged $19.9 million in acquisition financing for three retail centers in Southern California.
Shaun Moothart, Bruce Francis, Robert Ybarra, Dana Summers, Doug Birrell and Jim Korinek of CBRE arranged the financing on behalf of the buyer, a prominent family office based in Los Angeles.
Town Center North, located at 805-835 College Boulevard in Oceanside, is a 44,340 square-foot center and is 91 percent leased. The 27,876 square-foot Bouquet Canyon Plaza at 27611-27633 Bouquet Canyon Road in Santa Clarita is 100 percent leased and shadow-anchored by Albertson's and the third property at 2401 W. Whittier Boulevard in Montebello is a 4,148 square-foot property and 100 percent leased to Pacific Premier Bank and WingStop.
“The simultaneous acquisition of three multiple parcels was complex, but our team was able to deliver optimal financing terms and certainty of close during uncertain times,” said Moothart. “All three of the loans and the terms were negotiated during Covid shutdown. Plus, for Town Center North, the terms were finalized during construction of the anchor tenant's space. Needless to say, this was intricate and challenging.”
Added Francis, “The buyer was motivated by a firm 1031-exchange deadline, therefore, certainty of close was the highest priority.”
All three loans were done separately, versus one portfolio loan, to allow for maximum flexibility for the borrower. The non-recourse financing was in the 50 percent loan-to-value range, fixed for a 10-year term at 3.5 percent and provides for maximum prepayment flexibility.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.