FAIRLESS HILLS, PA — Cronheim Mortgage announced the closing of a $33.5MM mortgage loan for a Fairless Hills Towne Center, grocery-anchored retail center in Fairless Hills. The loan was placed with a leading investment bank and structured with a 7-year term and 30-year amortization schedule after an 18-month interest only period. The perm loan refinanced the bridge loan used to acquire and reposition the property.
The client, a JV between Larken Associates and Red Starr Investments, acquired the 294,000 s/f property in May 2015 with 120,000 s/f of vacancy after Walmart left the center, relocating to a new SuperCenter a couple miles away. The owner immediately undertook a full property renovation including a new façade, roof and HVAC replacements, parking lot repaving, new landscaping and signage. The cosmetic upgrades and an activist management approach led increased leasing velocity, which resulted in new leases and existing tenant term extensions totaling over 170,000 s/f of space. Additionally, the client converted 35,000 s/f of “dead” retail space in the rear of the former Walmart space to climate-controlled self-storage.
David Turley said: “Larken and Red Starr did a great job identifying the latent potential of this property and location and then executing quickly and creatively. We are pleased to have helped them recapitalize their capital stack to allow them to harvest some equity and structure the debt for long-term cash flow.”
HACKENSACK, NJ — Cronheim Mortgage secured $7.2 million in financing for a prime industrial property located in Hackensack. The loan was structured on a 15/25 basis with a 4.18% interest rate and was placed with Southern Farm Bureau Life Insurance Co., whom Cronheim represents as a correspondent and servicer.
The subject property encompasses three, free-standing structures and 100,000 s/f of flex space. The Subject’s largest building, previously leased to Restaurant Depot which accounted for 85% of the leasable area, was gut renovated in early 2016 and successfully re-leased in less than 6 months. The Subject is 100% occupied by 20 tenants including a sign manufacturer, bakery production center, DJ and entertainment company, and indoor trampoline and adventure park, among others. Units range from 1,280 s/f to 11,000 s/f.
The property is strategically located in Bergen County with an entrance to Rte. 80 less than one quarter of a mile away and the New Jersey Tpke. just 2.5 miles east. These are two of the major highways serving the region, providing access to western NJ towards Pennsylvania, and east to NYC and the entire metro.
The loan was originated and placed by Dev Morris, Allison Villamagna, and Andrew Stewart. n