Jennifer D. Duell is on special assignment for GlobeSt.com.
TEMPE, AZ-After pursuing 12 conduit lenders, Marcus & Millichap Capital Corp. managed to convince RBS Greenwich Capital to provide a $5.8-million conduit loan to a pool of 14 tenant-in-common investors acquiring a vacant retail center.
"It was a very complicated transaction and we did it all in less than 60 days," says Greg Miskovsky of MMCC who put the deal together. "There were a bunch of people that thought we couldn't get it done."
Miskovsky tells GlobeSt.com that most lenders passed on the deal because they were not interested in the empty building. "The building was completely empty. Although we had leases in place, no one was paying rent," he says. "Most conduits want the tenants inplace before they're willing to fund a deal."
The 24,382-sf Crossroads of Tempe currently is in finish-out. Once the tenants open and start paying rent in November, the center will boast a mix of retail and restaurants that includes Half Moon Grill and Bar, Bank One, a nail salon, day spa, check-cashing store and two small fast-food restaurants. "It's a really strong asset, but it has no anchor tenants and few national credit retailers," Miskovsky says.
RBS Greenwich Capital provided a 67% loan-to-value financing at a 5.97% interest rate, fixed for 10 years with a 30-year amortization. "This deal illustrates the competitive nature of lending right now and the sophistication of B-piece buyers in understanding new construction and the risk," Miskovsky says.
Also complicating the deal was that several investors were actually trusts with and were doing a 1031 exchange. "Ultimately the lender hung his hat on the strength of the seller and the buyer," Miskovsky explains. "I don't think they would have done this for a mom and pop buyer or seller." He says a special division of Ohio-based Glimcher Realty Trust developed and owned the center. Marcus & Millichap Real Estate Investment Brokerage Co. represented both buyer and seller.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
