Dealmaker: Grandbridge Closes $73M in Retail, Office
Michael Tucker firstname.lastname@example.org
Grandbridge Real Estate Capital, Charlotte, N.C., closed $73.4 million in financing for retail and office assets in Michigan and Georgia.
In Chesterfield, Mich., 25 miles north of downtown Detroit, Grandbridge closed a $42.9 million first mortgage secured by 291,200-square-foot retail center Waterside Marketplace. Grandbridge Vice President Gerry Robbins originated the acquisition transaction. The three-year loan from a Grandbridge correspondent lender closed with an interest rate in the low four percent range.
"The property is situated adjacent to Interstate 94, providing outstanding access to both a local and regional customer base and affords tenants the ability to draw consumers from several communities in the northeast Detroit suburbs," Robbins said. He noted center anchors include Dick's Sporting Goods, Best Buy, TJ Maxx and Lowe's Home Improvement.
Robbins also originated a $30.5 million first mortgage secured by a 251,000-square-foot Class A office building in Alpharetta, Ga. A Grandbridge correspondent lender funded the 10-year fixed-rate loan, which included an initial interest-only period.
"The challenge of the assignment was structuring around the remaining lease term of the anchor tenant in the building whose lease was up for renewal in four years," Robbins. "We were able to work through the underwriting by comparing the current rents at the subject to other Class A products in the market, assessing current vacancy and potential future vacancy in the submarket for a space of this size, along with structuring a flexible leasing cost reserve structure which did not materially impact current cash flow."
Robbins noted the asset was more than 95 percent occupied at closing.