Dealmaker: JLL Arranges $51 Million for Data Center, Retail
JLL Capital Markets arranged $51.5 million in financing for a Massachusetts data center and retail centers in Philadelphia and the San Francisco Bay Area.
JLL Capital Markets arranged $10.35 million in acquisition senior financing for 456 Bedford St., a 199,902-square-foot flex property and data center in Fall River, Mass. JLL worked on behalf of the borrower, Boston-based Rhino Capital Advisors LLC, to place the, fixed-rate, non-resource loan with Cambridge Savings Bank.
Rhino Capital Advisors LLC acquired the property in a sale-leaseback transaction with the seller and tenant, which signed a new 10-year lease. The tenant offers information technology services to a list of Fortune 500 companies.
Divided into two sections, the front section consists of a two-story granite structure with three-foot exterior walls recently built out as a Tier III/IV, raised-floor data center and office space, while the rear section is a three-story mill that the tenant intends to use for future growth.
Situated on 3.27 acres, the property’s Fall River location provides proximity to both Boston and Providence. 456 Bedford St. is within the Attleboro/New Bedford submarket, The market benefits from a highly accessible location with immediate access to major highways, including Interstate 195 and Routes 24 and 6, providing east-west and north-south mobility.
The Capital Markets debt placement team representing the borrower was led by Senior Director Brett Paulsrud and Associate Madeline Joyce.
“Given the current state of the market, there is a renewed interest in data centers from investors,” Paulsrud said. “This was a timely acquisition on Rhino’s behalf and a great addition to its portfolio. Both Rhino Capital and Cambridge Savings Bank worked patiently and flawlessly through the closing process despite the market challenges created by COVID-19.”
Paulsrud previously assisted the borrower in March with a refinancing on 271 Ballardvale St., a light manufacturing industrial building in Wilmington, Mass.
In Pennsylvania, JLL Capital Markets arranged $11.5 million for sale of and $7.14 million in financing for Bensalem Crossing, a 67,215-square-foot shopping center fully leased to a roster of tenants in Bensalem, outisde Philadelphia.
JLL marketed the property on behalf of the seller, New York City-area investors. Adler Realty Investments, Inc. purchased the asset. Additionally, JLL arranged permanent financing for the acquisition.
Bensalem Crossing is anchored by ShopRite, a market-leading grocer in the Philadelphia MSA. The remaining tenant roster consists of a CVS pharmacy and wireless provider. The marketing process commenced in April during the COVID-19 pandemic and, due to the essential nature of the rent roll and a new long-term lease with the grocer, the asset garnered significant attention from the investment community despite the economic conditions caused by the pandemic. The investment highlights included 100 percent occupancy and both a high-performing grocer/pharmacy.
The JLL Retail Capital Markets team representing the seller was led by Senior Managing Directors Jim Galbally and Chris Munley and Senior Director Colin Behr. The JLL Debt Placement team representing the new owner was led by Senior Managing Directors Chad Orcutt and Brian Halpern and Director Mike Pagniucci.
“We had a tremendous amount of interest in Bensalem Crossing, as investors remain bullish about the long-term prospects of grocery-anchored shopping centers and necessity-based retail,” Galbally said. “Bensalem Crossing is the definition of a necessity-based shopping center, as all of the tenants were deemed essential retailers and remained opened during the pandemic, further drawing interest from potential investors.”
In California, JLL Capital Markets announced closed $22.5 million for Del Norte Marketplace, a fully leased, 64,270-square-foot, pharmacy-anchored shopping center located in El Cerrito. JLL marketed the property on behalf of the seller, RBL Real Estate. Miami-based Jewell Capital, LLC purchased the asset and assumed the existing debt.
Del Norte Marketplace is a major East Bay drug-anchored retail center that was guided through a multi-year repositioning by RBL. The property now provides a long-term, stable income stream and potential to add density to the site in the future. It is home to a mix of e-commerce resistant and essential tenants, including Walgreens, Ross Dress for Less, dd’s Discounts and IHOP.
Situated at 11511-11565 San Pablo Ave., the center is in El Cerrito, an infill East Bay retail market with an average annual household income exceeding $140,510. Positioned directly across the street from El Cerrito Del Norte BART station, the center boasts a transit-oriented location along San Pablo Avenue (Highway 123) and has direct visibility and access to the I-80 Freeway.
The JLL Capital Markets Investment Advisory team representing the seller was led by Eric Kathrein, Tim Kuruzar, Bryan Ley and Jake Dempsey.
“We ran a highly competitive marketing process,” Kathrein said. “Investors responded very positively to the attractive tenancy, long term-leases and strength of location resulting in multiple competitive offers. Given the current environment and challenges some retailers are facing, we expect to see a continued flight to quality from buyers.”
