Commercial Real Estate Finance: Shopping Center Loan

Commercial Real Estate Finance:  California Shopping Center Loan Refinance

Commercial Real Estate Finance veteran Financial Compound arranges a $13.5 million refinance for an 88% leased, former K-Mart anchored retail center that was repositioned after Kmart went dark and left the center 20% occupied. The K-Mart space was subdivided into a few “small box” retail spaces and in line spaces.   After loan closing, a pad building is going to be demolished and rebuilt to accommodate additional new food tenants.

Commercial Mortgage Broker Financial Compound structured acceptable credit risk  mitigants into the loan for the lender to accomodate this pad development and still allow for a 75% LTV, ten year permanent loan fully funded at the initial closing.   Other loan terms include a 30 year amortization schedule, no personal guarantee required, and a fixed interest rate in the low 6s.

A strong commercial mortgage broker like Financial Compound can be invaluable for both borrowers and lenders in structuring and processing complex commercial real estate finance transactions.  A shopping center refinance with the characteristics of this transaction would normally only qualify for a short term bridge loan.  However Financial Compound was able to come up with some creative and unique risk mitigants that allowed a permanent lender to get comfortable making a long-term fixed rate loan on this center.