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| 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.
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| 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.
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| 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
BoardroomPR
954-370-8999
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