Dealmaker: Cushman & Wakefield Secures $73M for New Jersey Retail Redevelopment

Cushman & Wakefield, Chicago, arranged a $72.5 million construction loan to redevelop The Shops at Ledgewood Commons in Roxbury Township, N.J.

Santander Bank, Boston, supplied the financing to Advance Realty Investors affiliates.

“While financing retail centers can be challenging in the current climate, quality assets and experienced sponsors still garner strong demand from a subset of lenders,” said Cushman Executive Vice President John Alascio, who headed the assignment with Senior Director Sridhar Vankayala, Associate TJ Sullivan and Senior Analyst Zachary Kraft.

Alascio said several banks and debt funds expressed interest in the opportunity during the marketing process. Santander was selected based on how well it understood the redevelopment and its ability to provide the terms and flexibility necessary to complete the project.

Located in Morris County, N.J., Ledgewood Commons sits directly on Route 10, a trade corridor one quarter mile from Route 46 and two miles from Interstate-80.

Advance Realty Investors Principal and Managing Director Alex Cocoziello said Ledgewood Commons could serve as the model for how struggling retail centers, through great partnerships and creativity, can be successfully repositioned.

“The ownership has already added significant value to Ledgewood Commons via strong pre-leasing and re-commitment from existing tenants, which speaks volumes to the strength of the center,” Vankayala said. “Coupled with robust market and consumer demographics, this gave potential lenders comfort and enabled them to appreciate the center’s potential to transform into a vibrant retail power center anchored by credit tenants. As retail trends continue to move away from traditional malls, Ledgewood Commons is positioned to thrive in the modern retail environment as a premier open-air retail destination.”