NorthMarq’s Dallas office finds lender interest for retail properties in Nashville and Reno
DALLAS, TEXAS (April 16, 2021) – In a sign that retail assets can land financing in the post-pandemic environment, Ron Reese, senior vice president, debt and equity in NorthMarq’s Dallas office, recently secured financing for two retail properties through life company lender Genworth Financial.
“After reviewing these properties with our network of life insurance companies, Genworth Financial offered the best mix of terms and timing,” said Reese. “In both transactions, the sponsors were able to perform their business plan, which had little impact during the Covid-19 lock-down.”
The first property, Nashville West Outparcels, consists of seven parcels with 14 buildings, totaling 77,275 sq. ft. and was refinanced for $21.5 million in a 62% loan-to-value. Situated in front of the Nashville West Retail Center on Charlotte Pike, the property was 93% leased to a variety of tenants including major national brands such as McDonalds, Firestone, Starbucks, Chipotle, Outback Steakhouse, GameStop, and more. Nashville West is a 750,000-sq. ft. power center anchored by Costco, Dick's Sporting Goods, Best Buy, Ross, Marshall's, Old Navy, Petsmart, and Staples.
The second retail property financed in a 20-year, $11,500,000 loan through Genworth Financial is Pavilions Retail Center in Reno, Nevada. This retail center on S. Virginia St., a high-traffic main thoroughfare, sees roughly 25,000 vehicles per day on Virginia St., and 108,000 vehicles per day on Martin Luther King Jr Memorial Highway (Interstate 580).
When the sponsor acquired the property in April of 2017, the façade was in poor condition, and the center had declined to 36% occupancy. After a nearly $7 million investment for façade and expansion, the center has attracted two new tenants, Lee's Discount Liquors and Planet Fitness with each occupying approximately 30% of the now 76,954 sq. ft. center. Occupancy today is near 90%.
The transactions closed in the middle of the first quarter.
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