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
LaSalle closes £800 million debt fund
21 November 2017 | London | Reporter: Theo Andrew
The fund was supported globally, raising its funds from 17 limited partners across Europe, the Middle East, Asia and the US
EPIC warehouse acquisition in the pipeline
20 November 2017 | London | Reporter: Stephanie Palmer
Ediston Property Investment Company (EPIC) is set to acquire four retail warehouse parks in the UK from Stadium Group, for £144 million
HFF delivers $288.8 million loan for resi project
17 November 2017 | San Jose, California | Reporter: Theo Andrew
HFF has secured $288.8 million of construction financing for two luxury residential towers in San Jose, California
CBRE Capital Advisors chosen for £100 million fund
16 November 2017 | Belfast | Reporter: Theo Andrew
The Northern Ireland fund will provide debt finance for real estate, regeneration, low carbon and infrastructure projects. It has been appointed on a 15 year mandate
AXA IM - Real Assets hit final close on logistics club
15 November 2017 | London | Reporter: Theo Andrew
The fund, which seeks to invest in 1 million square metres of logistics developments across Europe, raised the equity commitments from four international institutional investors
LaSalle names European head in business restructure
14 November 2017 | Paris | Reporter: Theo Andrew
Karim Habra was previously head of France for LaSalle, and his appointment replaces the firm’s previous structure of naming country heads for Europe
L&G settles on UK retirement villages for £102 million
14 November 2017 | London | Reporter: Theo Andrew
The portfolio, not yet fully developed, will comprise of 694 units, located in Liphook in Hampshire; Faygate in West Sussex; Exeter in Devon; and Great Alne in Warwickshire