Case Study: $10.4MM Retail Shopping Center | Acquisition | Lake Charles, LA

Structured and arranged a combination of long-term, fixed-rate senior debt and joint venture equity to capitalize the acquisition and repositioning of a 157,000-square-foot retail shopping center in Lake Charles, Louisiana.

Challenges

The sponsor had a short timeframe to close while dealing with title issues caused by several non-consolidated ground leases. Additionally, with a Walmart opening nearby, the anchor tenant’s lease expiration during the loan term made lenders weary of potential prolonged vacancy and rollover costs.

Solutions

Identified a lender willing to provide a holdback structure with multiple cash sweep mechanisms in the event the anchor tenants vacated. Additionally, structured a joint venture equity partnership with a foreign fund manager looking for a higher current yield than what was available in core coastal markets.