 |
| 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
·
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.
 |
Scott Aiese
|
The
firm has more than 3,000 Capital Markets specialists worldwide with offices in
nearly 50 countries.
For more news, videos and research resources
on JLL, please visit our newsroom.
Contact:
Jenna Sharp
JLL,
Public Relations
Dallas,
TX
M
+1 214 394 3356
Jenna.Sharp@jll.com
jll.com.
