NorthMarq Capital arranges acquisition bridge financing of $22.5 million for Los Angeles based 100,000 sq. ft. retail center

LOS ANGELES (October 22, 2015) – Joe Giordani, vice president of NorthMarq Capital’s Newport Beach office arranged acquisition bridge financing of $22.5 million for a 60 percent occupied, 100,000 square foot infill retail center located in Los Angeles, California. The non-recourse transaction had an 80 percent loan-to-cost ratio and was structured with a 2-year interest only term. 99 Cents, AutoZone and Starbucks represent some of the property’s major tenants. “Infill retail centers like this with a “value add” component are a rarity in today’s market. This shopping center was well occupied a few years ago but had entirely too much shop space with "mom & pop" retail tenants. The seller had brought the occupancy down on purpose in order to assemble space and create larger availabilities for credit tenants to occupy,” said Giordani. “Today the property is about 60 percent occupied and well positioned to attract some larger credit tenants. The buyer was looking for a max leverage, non-recourse, bridge loan at a reasonable interest rate to finalize the transformation of the property and optimize its value. This bridge lender was able to accommodate their requests and also managed to get comfortable with a very complicated ownership structure. This was a win-win-win for all parties involved.”