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| Steve Bram |
LA HABRA, CA – George Smith Partners,
one of the nation’s leading commercial real estate capital market advisors, has
successfully arranged $101.3 million in non-recourse bridge debt for a 375,000
square-foot, 37-acre, open-air regional shopping center in La Habra, California
on behalf of the property owner, DJM Capital Partners Inc.
“Dual-anchored by two
top-name grocery stores, Sprouts and Smart & Final, this is a large
property in the midst of a successful repositioning,” says Steve Bram,
Principal/Co-Founder of George Smith Partners.
“Led by experienced
and well-respected ownership, the center has attracted national credit tenants
including Petco, Ulta, Hobby Lobby, Ross Dress For Less, and LA Fitness, and is
situated in a prime location within the La Habra market.
"Our team at
George Smith Partners was able to draw upon each of these elements to secure
maximum leverage for this bridge loan.”
Bram worked on behalf
of DJM Capital Partners Inc. to arrange $96.6 million in initial funding and
$4.7 million in future funding for the development of a new pad at the
intersection of Imperial Highway and Beach Boulevard.
The pad is pre-leased
to Starbucks and Jimmy John’s. The financing will also fund a tenant
improvement package for a Regal Cinema lease extension that will include a
wraparound screen for the 16-screen neighborhood cinema.
“During the financing process,
George Smith Partners was able to capitalize on a lease renewal signed by Smart
& Final in order to achieve even more favorable terms for our firm,
including non-onerous returns on reserves,” says Lindsay Parton,
Principal with DJM Capital Partners.
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| Lindsay Parton |
Parton adds that the
loan, which replaced existing senior and mezzanine loans on the property,
covered closing costs and will fund 100% of future capital expenditures, tenant
improvements, and leasing commission costs associated with the final stages of
the property’s stabilization.
The loan was negotiated at an
interest rate of LIBOR plus 3.20%+, bringing the 24-month interest-only loan
offers three 12-month options to extend and has an origination fee of 75 basis
points.
Yield maintenance is
15 months and is open thereafter. Loan-to-value is 75% currently, dropping to
70% upon property stabilization, and the debt yield for the property is 7.8%.
CONTACTS:
Lisa James/Jenn Quader
(949) 955-7940