NorthMarq Capital Secures $61M for Retail Assets

June 2, 2016

NorthMarq Capital, Minneapolis, secured $61 million to refinance two New England shopping centers.

Greg Nalbandian, Managing Director, and Doug Nickerson, Vice President, collaborated to arrange $50 million to refinance Franklin Village, a 303,000-square-foot grocery-anchored mixed-use property in Franklin, Mass. They structured the transaction with a 10-year term and 30-year amortization schedule.

Sun Life Financial, Toronto, Ontario, provided the financing for the real estate investment trust borrower. Stop & Shop, Dress Barn and Marshalls tenant the property.

“Our client took advantage of a very favorable interest rate environment and rate locked this 10-year refinancing six months prior to maturity with no spread premium,” Nickerson said. “Our existing lender, Sun Life of Canada, aggressively pursued this early refinance in order to keep this well-performing loan on their books.”

Nickerson said Sun Life offered an interest rate well below 4 percent “and upsized the loan significantly.”

In Fairfield, Conn., NorthMarq Senior Vice President and Managing Director Ernest DesRochers secured $11 million to refinance Turnpike Shopping Center, an 110,000-square-foot retail property on Black Rock Turnpike. The 10-year loan allows five years of interest-only payments followed by a 30-year amortization schedule.

A life insurance company supplied the financing. Shop-Rite Supermarket, Eastern Mountain Sports and Party City represent the property’s major tenants.

“This was as highly sought after loan by the life company industry because of its strong sponsorship and underlying underwriting metrics,” DesRochers said. “Its in-fill location will assure its continued success.”