ROCKWALL, TX-Dunhill Partners Inc. has obtained a CMBS loan to refinance Steger Towne Crossing, a 102,454 square foot retail center anchored by The Sports Authority and shadow anchored by SuperTarget.
The 10-year, fixed-rate loan replaces an existing portfolio loan that was scheduled to mature soon, according to Jason Piering with Quadrant Realty Finance. He and Randy Fleisher arranged the non-recourse loan for Dunhill Partners.
Dunhill Partners’ new CMBS loan was originated by a well-known CMBS lender. It has an interest rate in the 5% range and a 70% LTV restriction.
Situated on 9.9 acres at Ridge Road and Steger Towne Drive, Steger Towne Crossing is 96.6% occupied. In addition to The Sports Authority, it houses a number of national tenants including Starbucks, AT&T Wireless, GameStop, H&R Block, GNC and Payless Shoe Source.
Piering tells GlobeSt.com the 13-year-old center did not garner a significant amount of interest from portfolio lenders. CMBS originators, in contrast, were quite interested.
“Life companies weren’t interested because the center doesn’t have a grocery anchor, a credit tenant or an anchor lease that extends seven to 10 years beyond the loan,” Piering explains. “It’s very hard to convince life companies to go outside their traditional lending box.”
Although The Sports Authority is a strong retailer, it does not have a credit rating since it is a private company. Moreover, the retailer has a 10-year lease.
Dallas-based Dunhill Partners brought The Sports Authority to Steger Towne Crossing in 2009. The firm acquired the vacant Albertson’s box that anchored the center and backfilled it with the sporting goods retailer.
Piering says the CMBS interest varied a little bit because of the center’s location. “If we had an originator with a team on the ground in DFW, those CMBS groups were definitely more interested than those who didn’t,” he recalls. “Rockwall isn’t well-known to people outside the Metroplex.”
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.
