Dealmaker: MidCap Financial Closes $58M for Retail

Michael Tucker mtucker@mba.org

April 13, 2018


MidCap Financial, Bethesda, Md., closed transactions totaling $57.6 million for retail assets in Florida, Illinois and California.

In Tallahassee, Fla. MidCap closed a $21.7 million first mortgage secured by Governor's Marketplace, a 243,000-square-foot mall-peripheral power center.

GBT Realty Corp., Brentwood, Tenn., acquired the asset from Retail Properties of America for $25.5 million in a transaction that closed on March 21. Governor's Marketplace stretches across Governor's Square Boulevard from a 34-acre site at the entrance of Governor's Square Mall to a two-acre site with three buildings at the southeast corner at Magnolia Avenue.

In addition to Governor's Marketplace's new tenants Carter's and Five Below, GBT recently finalized leases with indoor trampoline park Urban Air. The center is now 97 percent leased.

HFF Senior Managing Director Bill Fishel and Director Matthew Stewart advised GBT on the acquisition financing.

In Aurora, Ill., MidCap provided an $18 million senior loan to Windfall Group, Chicago, to allow it to acquire and reposition the former Yorkshire Plaza. Best Buy, Value City Furniture and Pier 1 Imports anchor the 362,000-square-foot power center.

Built in 1986, the center is located along a heavily trafficked retail corridor directly north of the Fox Valley Mall. Windfall plans to rename the center Pacific Square and reposition and remodel the property into an Asian-oriented shopping center with new restaurants and shops that cater to the local community.

Cushman and Wakefield Capital Services Director Jessica Ke and Eastern Consolidated Managing Director John Leslie arranged the transaction.

MidCap also provided a $17.9 million floating-rate loan with a term of up to three years for DPI Retail LLC, Santa Monica, Calif., to refinance and reposition Stockton Plaza in Sacramento, Calif. The Mozer Team at George Smith Partners arranged the financing.

Formerly anchored by Kmart, the property will be renovated and repurposed as the home of a regional grocery chain and a national discount department store.

DPI Retail used the loan proceeds to refinance the existing debt and fund renovation, lease-up and carrying costs; an earnout will also be provided subject to certain performance hurdles.

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