Done Deals: JLL’s Retail Capital Markets group executes over $3 billion in financings YTD 2023

Monday, July 10, 2023

JLL’s Retail Capital Markets group executes over $3 billion in financings YTD 2023

Claudia Steeb

Although uncertainty within the capital markets remains, lenders are demonstrating strong interest in providing financing to retail properties

CHICAGO, IL, July 10, 2023 – Despite rising interest rates and the everchanging capital markets landscape, JLL’s Retail Capital Markets team has announced its execution of over $3 billion in retail financings through year-to-date 2023, demonstrating an ability to secure lender interest for well-located retail centers.

Wally Reid

“After recently solidifying our 2022 spot as the top overall debt intermediary by Mortgage Banking Association, we are pleased to see the success for the JLL Capital Markets debt platform thus far in 2023,” said Wally Reid, Senior Managing Director.

“We look forward to JLL advancing as a major player in debt advisory financing as we continue to execute deals across all lender and asset types in the second half of the year.”

According to JLL’s Q1 2023 Outlook, regional and local banks remained the most active lender in retail with 44% of total transactions, followed by life companies with 20%.

CMBS lenders have reemerged as an active participant in the retail sector. Additionally, retail has been one of the largest property types in several CMBS deals that have priced this year.

“Retail assets that have survived throughout the past several years—or those with supportable redevelopment plans—as well as have strong and experienced sponsorship willing to commit necessary capital, continue to be attractive to lenders,” said Senior Managing Director Claudia Steeb, who has led the financing efforts for several top transactions.

“Understanding current lender or rating agency underwriting requirements and gaining sponsorship acceptance of these terms remain essential in successfully securing financing, especially for the larger retail properties.”

JLL Capital Markets’ top retail debt transactions for 2023 include:

· The $425M refinancing of Miracle Mile Shops in Las Vegas, NV

· The $290 million refinancing of Bergen Town Center in Paramus, NJ

· The $275 million refinancing of Westfield Galleria at Roseville in Roseville (Sacramento), CA

Legacy Place, Boston, MA

· The $190 million refinancing of Legacy Place in Boston, MA

· The $42 million refinancing of Promenade at Coconut Creek in Coconut Creek, FL

Additionally, the JLL Retail Capital Markets platform is currently executing a wide array of financing of retail centers, ranging from unanchored strip centers to super regional enclosed malls.

Promenade at Coconut Creek in Coconut Creek, FL

“Despite prevailing challenges in the broader credit markets, liquidity is intact for high-quality real estate across asset types,” said Senior Managing Director Brett Paulsrud, Co-Head of JLL Capital Markets’ Boston Office and deal team member for Legacy Place and Promenade at Coconut Creek.

Brett Paulsrud

“Retail fundamentals remain very strong on a national level, and as a result, lenders of all types remain active deploying capital into the space.”

“We continue to see retail in a favorable position for financings as the fundamentals prove to be solid. Retail is now finding liquidity that was otherwise dedicated for other asset classes,” added Senior Managing Director Scott Aiese, who executed the refinancing of Bergen Town Center.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization.