16 March 2017
Los Angeles
Reporter: Mark Dugdale

Retail centre in $30 million refinancing


Commercial investment banking firm George Smith Partners has secured $30 million in refinancing for Plaza de Hacienda, a 156,000 square-foot grocery-anchored retail centre in Los Angeles.

The 10-year $30 million loan, from an unnamed commercial mortgage-backed securities lender secured on behalf of real estate investment firm Optimus Properties, was structured with a loan-to-value of 65 percent with a five-year interest-only period, followed by an amortisation of 30 years.

The rate was fixed at the 10-year swap plus 2.53 percent, with a 1.23 debt coverage ratio and 7.75 percent debt yield.

“With the wave of CMBS loans set to mature this year, many borrowers are looking to refinance,” according to George Smith Partners principal and managing director Shahin Yazdi. “It’s prudent to seek long-term fixed-rate loans in order to lock in low rates now, prior to future interest rate increases,”

“The challenge with this deal, however, was that despite the strength of the center’s tenant mix, many of the anchor tenants had leases that were set to expire in the next several years. As a result, many lenders were hesitant to be aggressive with the debt yield.”

“By demonstrating the strength of this stabilised asset, which has historically maintained nearly 100 percent occupancy and a strong roster of national credit tenants, we were able to secure competitive cash-out refinancing,” Yazdi said.

More news
The latest news from Real Estate Investment Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Warehouse REIT acquires four UK assets
25 September 2017 | London | Reporter: Theo Andrew
The purchase, which is in addition to the £108.85 million 27-asset Tilstone Portfolio, represents a net initial yield of 7.5 percent
AEW strengthens Madrid portfolio
25 September 2017 | Madrid | Reporter: Theo Andrew
AEW has acquired an office in Madrid on behalf of its European Value Investors fund, for €30 million
The top 100 private real estate fund managers accounted for 62 percent of total industry fundraising over the past decade, according to a new Preqin report
BlackRock sells Marina Bay office for SGD 2.12 billion
22 September 2017 | Singapore | Reporter: Theo Andrew
BlackRock has agreed to sell Asia Square Tower 2, in Singapore’s Marina Bay, to CapitaLand Commercial Trust, for SGD 2.12 billion (US $1.6 billion)
JLL names head of capital markets for CEE region
22 Septmeber 2017 | Prague | Reporter: Theo Andrew
JLL has appointed Mike Atwell as head of capital markets the Central Eastern European (CEE) region and the Czech Republic
HFF facilitates sale of residential and office assets
21 September 2017 | Plainsboro, New Jersey | Reporter: Jenna Lomax
Kushner Companies has acquired Quail Ridge Apartments in New Jersey, for $146 million, and Perimeter Park in North Carolina has sold for $105.5 million
Fitch revises ratings of retail REIT duo
21 September 2017 | New York | Reporter: Becky Butcher
Fitch Ratings has revised the ratings and outlook of Washington Prime Group (WPG) and CBL & Associates Properties, two retail REITs