Case Study: $28MM Retail Shopping Center | Acquisition | Philadelphia, PA

Structured and arranged medium-term fixed-rate senior debt for the acquisition of a 224,000-square-foot retail shopping center located in the Philadelphia Mills retail node of Pennsylvania.

Challenges

Near term expiration of several anchor leases proved challenging to achieving full proceeds. Additionally, the for-profit educational nature of the main anchor made financing difficult due to present political biases towards said tenant class.

Solutions

Worked with the borrower and lender to extend the closing date to enable several anchors to negotiate early renewals. As rates were moving up during closing, negotiated a reduction in required TI/LC reserves (justified by the early renewal of anchor tenants), thereby keeping proceeds flat. Helped research and draft a report for the B piece buyer showing that the current graduating and financial metrics of the school did not endanger it of running afoul of the Department of Education.