$16M Loan a Done Deal for Movie-Anchored Center

ROCKVILLE, MD-Blackacre Capital Management has ironed out an arrangement through Deutsche Bank Mortgage Capital LLC that puts a seven-year, $15.8-million financing package in place for the 95,000-sf retail destination known as the Pavilion at Rockville. Blackacre solidified the fixed-rate, securitized loan on behalf of property owner Pavilion Partners Inc. The six-year-old Pavilion has a 2004 assessed value of approximately $12.8 million.

The tenant base at the Pavilion–which is just 15 miles outside of Washington, DC, in Rockville Town Center on Montgomery Avenue–played a significant role in securing the loan. Regal Cinemas’ 13-screen movie theater is the property’s anchor, and counts as its neighbors a diverse group of other tenants including Ben & Jerry’s ice cream shop, restaurant Tara Asia, and Maryland’s Office of the Public Defender. Occupancy at the property was 95% at the time of the transaction. “The long-term value of the Pavilion at Rockville Center is ensured because of its captive customer base from the theatre patrons as well as the surrounding businesses,” Blackacre senior managing director Bob Donhauser explains.