Wednesday, October 5, 2016

Grandbridge's Adam Lipkin Closes $19 Million in Financing for New York Investor

Adam Lipkin
MIAMI, FL and CHARLOTTE, NC. (Oct. 4, 2016) — Adam Lipkin, vice president of Grandbridge Real Estate Capital's Miami team, has secured three loans totaling $18.75 million for a New York-based investor’s acquisition of three retail properties in the Southeast.

The financing provided to Big V Capital is an example of how a third-party advisor like Grandbridge can facilitate creative financing solutions and obtain extremely favorable terms for value-add investors.

Led by Lipkin, Granbridge placed the loans with a major regional bank. The five-year loans have floating rates of under 3 percent with two years interest-only, followed by a 25-year amortization schedule.

A vertically integrated real estate investment and property management company, Big V Capital specializes in buying and managing neighborhood and community shopping centers throughout the Southeast. The company acquired the three shopping centers totaling 457,695 square feet for $24 million (or $52 per square foot) from Ziff Properties, Inc. of Charleston, S.C.

Lanier Plaza, Brunswick, GA

The portfolio includes the following properties:

·             Village at Myrtle Grove, a 74,370-square-foot community shopping center located in Wilmington, N.C.
·             Lancer Center, a 180,194-square-foot community shopping center located in Lancaster, S.C.
·             Lanier Plaza, a 203,876-square-foot grocery-anchored community shopping center located in Brunswick, Ga.
“The portfolio represents an intriguing value-add investment opportunity to pick up high-quality, well-located assets with strong cash flow at a low cost basis,” Lipkin said. “There is significant value creation available through further leasing at the centers.”

To facilitate the floating rate financing, Lipkin educated the borrower about the potential cost savings and other benefits of floating rate debt over fixed-rate debt, including the efficient ways to hedge against an increase in LIBOR with interest rate caps at a minimal cost. 
Village at Myrtle Grove, Wilmington, NC
“Value-add borrowers can end up breathing a deep sigh of relief knowing they didn’t pay to lock in a fixed-rate loan at a spread of 100 basis points or more,” Lipkin said. “The interest savings can be huge over a 3-to-5 year period.”

Interest rate exposure can be a critical component of the success of a project, according to Lipkin. Interest rate caps can provide multiple advantages over other hedges, like rate swaps, including no prepayment penalties and minimal transaction costs.

For a complete copy of the company’s news release, please contact:

Eric Kalis

No comments: