NEW YORK, NY – Faris Lee Investments, the nation’s largest retail-specialized investment sales and advisory firm, along with Faris Lee Capital, has completed the $18 million recapitalization of a 200,000-square-foot retail center in Normal, IL on behalf of the owner, The Dial Companies, a large Midwest developer. Built in 2007, the center’s anchor tenants include Schnucks Grocery and a 14-screen Starplex Theater. The center is currently 70 percent occupied and has 12 outparcels available for future sale, lease or development.
The recapitalization of the center created an opportunity for Faris Lee Investments to represent Thompson National Properties in a joint venture with The Dial Companies to acquire the note on the property.
Faris Lee Capital advised The Dial Companies and negotiated the discounted loan pay-off, procured the new debt and structured the joint venture.
Rich Berlinghof (top right photo), managing partner, Faris Lee Capital and Rich Walter (middle left photo), president of Faris Lee Investments, successfully directed all aspects of this complicated transaction.
Thompson National Properties acquired the developed 200,000-square-foot portion of the center with the joint venture established as owner of the 12 unfinished outparcels.
“This transaction was highly structured and involved a discounted loan payoff combined with new first mortgage debt and an infusion of equity from Thompson National Properties, a new equity partner for the project,” said Berlinghof.
“The recapitalization allowed the developer to achieve its goal of extinguishing the recourse associated with the original loan while maintaining leasing of the project and a back-end participation.
“Additionally, the property provides substantial upside to both the new equity partner and the developer.”
Faris Lee Capital currently has more than $200 million in recapitalization projects underway, with $400 million anticipated to complete by year end.
“This transaction underscores how complex the real estate investment market has become and the depth of financial and property level expertise that is demanded. It’s also why we continue to build upon our firm’s disciplined and creative transactional expertise and sophisticated financial experience,” said Rick Chichester (lower right photo), chief operating officer, Faris Lee Investments.
Contact: Darcie Giacchetto, 949.278.6224,
Spaulding Thompson & Associates For Faris Lee Investments
No comments:
Post a Comment