Dealmaker: Berkadia Secures $41M for Retail Properties
Berkadia secured $40.8 million for two retail properties, The Shops at Stony Creek in Michigan and World Cup Plaza in Texas.
In Shelby Township, Mich., Berkadia Senior Managing Director Colin Callaghan and Director Aaron Moll arranged $23.2 million in financing for retail strip center The Shops at Stony Creek. Owner MJC Homes Inc., Macomb, Mich., received the funds on October 31.
The loan provided MJC Homes with a non-recourse 10-year fixed-rate loan with a 30-year amortization schedule. “This loan provided them an ability to return some equity, remove their construction recourse and put a well-positioned regional shopping center into a permanent loan at a great interest rate,” Moll said. “Despite some of the headwinds we have seen in the capital markets relating to retail centers, we were able to provide an assortment of options to our client on this refinance.”
Located at the southwest corner of 26 Mile Road and Van Dyke Avenue, The Shops at Stony Creek is anchored by LA Fitness, TJ Maxx and Ulta Beauty and is shadow-anchored by a Kroger that opened in 2017.
In the Dallas-Fort Worth area, Berkadia arranged $17.6 million to refinance World Cup Plaza, a 91,400-square-foot retail strip center in Frisco. Managing Director Joseph Hevey of Berkadia’s Dallas office originated the loan for Dallas-based World Cup Management.
A commercial mortgage-backed securities lender provided the 10-year loan with a sub-4 percent fixed interest rate and full-term interest-only payments.
“This property is strategically located in a proven retail area with high traffic counts situated in a high demographic suburban market,” said Hevey. “It should continue to be a highly successful destination property with increasing rents and valuation.”
Hevey noted the deal closed on November 5 and said Berkadia will service the loan.