CHICAGO-Baker Development Corp. recently gained a $66 million loan for its retail center here at 2100 N. Elston Ave. New York City-based Meridian Capital Group LLC arranged the senior mortgage loan to refinance the 178,700-square-foot center.
The center is anchored by a 128,230-square-foot Kohl’s, and also includes a Best Buy and a Harris Bank. The property is just west of DuPaul University, and east of the Kennedy Expressway.
Ronnie Levine, a managing director with Meridian, tells GlobeSt.com that a plan to use a CMBS loan fizzled with the economy downturn in the beginning of the second half. “There’s lots of volatility with CMBS spreads, the interest has become unattractive,” Levine says.
He says the five-year financing, provided by a balance-sheet lender, features an approximate 4% fixed rate. Meridian also negotiated an allowance for up to $6.5 million in mezzanine financing that is subordinate to the senior mortgage, Levine says.
There’s strong interest from balance-sheet lenders in strong, credit-quality retailers with long-term leases, he says. “They want quality infill property with strong demographics, there’s still a healthy appetite out there for attractive collateral,” Levine says.
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