Retail

2400 Broadway: $7,100,000
Dexia provided a $7,100,000 bridge loan to refinance the recent purchase of three retail condominiums. The three condos are 100% leased ground floor retail units, totaling 4,350 square feet. The subject benefits from very high retail foot traffic due to its location on Broadway within New York’s stable, affluent and densely populated residential Upper Westside neighborhood. Originally constructed in 1915, and renovated in 2007 during a conversion to condominiums, the condos are fully leased to three tenants: Ritz Camera, The Wine Place, and a neighborhood grocery/pharmacy store. The loan was underwritten at a 63% loan to purchase price, 1.20x stabilized DSCR, and structured on a 36-month Interest Only term with two 6-month, and one 12-moth extension options. Additionally, the loan provides for a $277,500 performance based future funding.

 

White Horse Plaza: $5,300,000
Dexia closed a $5,300,000 bridge loan secured by White Horse Plaza, a 170,980 sf unanchored retail center. The subject property is located in the rapidly expanding western Greenville area of South Carolina. The property was originally built in 1988 on a 30-acre site for Wal-Mart. It was then renovated in 2004 for the current use. Due to its current configuration, 29,772 sf is leased for storage space. The 29,772 sf was once a part of a big box space that has long since been cut up and leased to various retail tenants. Located at a prime retail corner with six site entrances, the property benefits from optimal visibility, access, and street frontage. The subject is currently 89.5% occupied with a stable operating history and is 91.8% leased (based on 141,208sf). The initial loan term is 24-months of IO, with two, 6-month extension options. The loan to purchase price was 83% with a minimum 1.25x DSCR coverage based on tenants in place, a 30-year amortization, and 6.5% interest rate.

 

Old National Town Center: $10,850,000
This $10,850,000 fixed rate conduit loan was written at a 52% loan to purchase price and structured on a 10-year IO basis with an equivalent 1.40 DCR based on a 30 year amortization. The loan is secured by a multi-tenanted retail center, which is part of the largest and newest retail center in the neighborhood, and is shadow-anchored by a newly developed Wal Mart. The subject improvements consist of four one-story buildings containing 98,993SF of leasable area and are leased to 22 tenants. Subject property is located in Atlanta, Georgia.

 

Anchorage Power Center: $17,000,000
Dexia funded this $17,000,000 loan secured by two single-story retail buildings totaling 174,511sf located in Anchorage, Alaska. The retail center is well-located at one of the busiest intersections in the city and within a strong retail area. The center was previously occupied by Kmart which vacated during its bankruptcy process and subsequently subdivided and renovated in 2004 for specific tenants, including Petco, Michael’s, and others. The subject is fully leased, however it is only 77% occupied at this time as improvements are underway in the Michael’s store. Approximately 53% of the subject space (representing 51% of the income) is occupied by rated national tenants. Reserves were established for taxes and capital expenditures. Additionally, cash flow sweeps were set up to mitigate the TI/LC risk related to two tenants; these funds will be released upon lease renewal or tenant replacement. A rent holdback was established at funding, to be released upon occupancy of the space leased to Michael’s, which is undergoing build-out improvements at present. The loan was structured with a 10-year term based on a 20-year amortization schedule. The loan was underwritten to a 1.39 DSCR and a 66% LTV.

 

The Airport Square Shopping Center: $16,000,000
Dexia funded this $16,000,000 loan secured by an anchored retail center containing a total of 187,476sf net rentable area on a 22.75-acre site located in Toledo, Ohio. The subject benefits from a strong retail location as demonstrated by the length of occupancy of the tenants and the number of large national tenants in the surrounding retail area. Seven of the nine tenants, equaling 75% of the rental income, have been in occupancy for at least 10 years. The subject is 95% occupied and has an excellent tenant mix with six national tenants –all with renewal options– and anchor tenants such as Best Buy, Office Depot, and Michael’s Crafts. Reserves were established for taxes, insurance, capital expenditures, and TI/LC. An additional reserve was set up to provide a “synthetic rent stream” when one of the tenants moves to a new space until a new and acceptable lease is in place. The loan was structured with a 10-year term based on a 30-year amortization period. The loan was underwritten to a 1.26 DSCR and a 79% LTV.

 

University Plaza: $22,400,000
Dexia funded this $22,400,000 loan secured by a retail center consisting of two buildings, two pad site buildings (a bank and a fast food restaurant), and two ground leases located in Newark, Delaware. The subject benefits from its location in a strong retail area with excellent accessibility and visibility. The subject is anchored by Burlington Coat Factory and Acme Supermarket. Both of these tenants have been at the subject property for more than five years. The subject has a strong occupancy history (100% occupancy rate during the last three years) and is presently fully leased with a diverse mix of national, regional, and local tenants. Reserves were established for taxes, insurance, and capital expenditures. The loan was structured with a 10-year term amortizing over 30 years. The loan was underwritten to a 1.30 DSCR and an 80% LTV.

 

Pasadena Crossroads: $11,500,000
Dexia funded this $11,500,000 loan secured by a 312,602 sf retail center located in a strong retail market of Pasadena, Maryland, approximately 15 miles South of Baltimore. The major tenants include: K-Mart, Shopper’s Food Warehouse, Babies-R-Us, and Gardiner’s Home Furnishing. Reserves were established for taxes, insurance, capital expenditures, and TI/LC. The escrow structure includes cash flow sweeps in the event of lease termination or non-renewal. Additionally, a $1.0 million holdback will be held for the life of the loan to ensure adequate funds to acquire fee simple interest in the land, if necessary. The loan was structured with a five-year term amortizing over 30 years. The loan was underwritten to a 1.44 DSCR and a 62% LTV.

 

Super Mall Retail: $6,200,000
Dexia has closed a $6,200,000 loan secured by a shadow anchored retail center in Auburn, Washington. Completed in 2005, the 26,175 sf strip center is currently 82% leased to a mix of tenants including Starbucks, Cold Stone Creamery, Subway, Hairmasters and EB Games. The tenants benefit from their location across the street from the largest outlet mall in the Puget Sound containing over 900,000 sf of rental space. The loan was structured on a 10-year term with 12 months of IO followed by a 30 year amortization schedule. In addition, a holdback was retained for the difference between income in place and stabilized occupancy.

 

Town Mall of Westminster: $45,000,000
Dexia has closed a $45,000,000 loan secured by a 445,450 sf regional shopping center in the upper middle income Baltimore suburb of Westminster, Maryland. Completed in 1987 and renovated in 2003, the mall has five anchor tenants that include Sears, Belks, Steve & Barry’s, Boscov’s and Regal Cinema. At closing, TownMall was 90% occupied and $5,000,000 was escrowed for capital improvements, tenant improvements and leasing costs. The loan was structured on a 10-year term with 36 months of IO followed by a 30 year amortization schedule.