BWE, a national commercial and multifamily mortgage banking company, announced today the closing of four loan deals totaling $40,150,000 to finance four retail and mixed-use properties across California.
“In this lending environment, BWE is committed to working with our many capital providers to ensure our clients can receive the best possible terms as they recapitalize and acquire retail properties,” said Tom Kenny, Executive Vice President in BWE’s Irvine office. “As the retail market recovers from the pandemic, BWE will continue to bring capital to important projects like these in every corner of the country.”
The four loans are:
- A $12,250,000 bridge loan to provide financing for the acquisition and redevelopment of a 28,000 square foot strip retail property located in Rancho Palos Verdes, California. The loan features a 75% loan-to-cost ratio and includes an $8.5 million holdback to complete the full rehab of the property. Mike Guterman, Senior Vice President in BWE’s Los Angeles office, originated the loan from Calmwater Capital on behalf of West Hive Capital. Anchored by O’Reilly’s, the property is 67% preleased and includes retailers like Habit Burger, Mattress Firm, Urbane Café, and California Fish Grill.
- A $7,700,000 non-recourse loan to provide permanent financing for a mixed-use property in Santa Monica, California. The improvements consist of office (46%) over retail (54%) and the property was 100% leased to seven tenants at closing of the loan. The loan has a 10-year term with a 30-year amortization period and includes prepay flexibility for the borrower. Max Sauerman, a Senior Vice President in BWE’s Los Angeles office, originated the loan with one of BWE’s correspondent life insurance companies.
- A $11,200,000 loan to provide financing for a 155,569 square foot anchored retail center in Fresno, California. The fixed-rate loan, which was locked at the loan application, has a 10-year term with two years of interest-only payments followed by a 30-year amortization period. The rate is fixed for the initial five years with a rate reset thereafter. Tom Kenny and Josh Boehling, Senior Vice President in the Irvine office, originated the loan through a correspondent life company. The property is currently 91% leased and has 13 tenants. Tenants include DD’s Discount, Raising Cane’s, O’Reilly Auto Parts and Five Below.
- A $9,000,000 loan to provide financing for a 52,084 square foot grocery-anchored retail center in Torrance, California. The fixed-rate loan, which was locked upfront at application, has a three-year term with one year of interest-only payments followed by a 30-year amortization schedule. The loan also has a three-year extension option. Tom Turnage, Senior Vice President, originated the loan through a correspondent life company. The shopping center is 90% leased and has 13 tenants, with the new grocery-anchor not opening for business until after loan closing.