Center Oak Refinances 659,776-SF Valley Mall

UNION GAP, WA-Center Oak Properties LLC and Oaktree Capital Management LLC have obtained a $45-million loan on their Valley Mall property in this Central Washington city located a few miles south of Yakima on Interstate 82.

Center Oak is a Gresham, OR-based developer and redeveloper of shopping centers in the Western US. Oaktree is an institutional money manager based in Los Angeles. The duo obtained the 10-year, fixed-rate 75% loan through GMAC Commercial Mortgage, a conduit lender. Holliday Fenoglio Fowler LP senior managing director Paul Brindley sourced the loan. Brindley declined to provide the exact interest rate on the loan, but anchored retail rates generally range from 145 to 165 basis points over the 10-year treasury.

Located at 2515 Main St., Valley Mall is a 23-acre property that includes a 482,861-sf, recently renovated mall and a 176,915-sf newly developed power center. The property is 93% leased and anchor tenants include, Sears, Bon Marche,and Gottschalks in the mall, and Borders Books, Ross Stores, Old Navy, Linens-n-Things and TJ Maxx in the power center. The new loan pays off the construction-rehab loan.