Unanchored neighborhood shopping centers used to be viewed as stepchildren to malls, food store-anchored shopping centers and big box shopping centers when it came to CMBS conduit loan financing. But internet shopping using Amazon and other retail websites has changed everything. Unanchored neighborhood shopping centers are now highly desired CMBS conduit loan candidates. Why, you ask?
Unanchored neighborhood shopping centers often feature internet-resistant, service-oriented tenants. Examples are restaurants, medical tenants (doctors and dentists), dry cleaners, dollar stores, hair and nail salons and the like. The fact that neighborhood centers provide goods and services that are not purchased online is an important advantage, which is very attractive to CMBS lenders. The advantage to shoppers is convenient access on a daily basis.
“We have recently completed five or six CMBS conduit loans secured by unanchored neighborhood shopping centers,” commented Michael Sneden, Executive Vice President at ValueXpress. “The loans ranged from $1.5 million to $6 million. All of the properties included restaurants. Some of the other tenants included dollar stores, medical uses, fitness and cell phone providers.”
“These loans were all completed though our fixed-fee program,” noted Dennis Suh, Senior Vice President at ValueXpress. “The program fixes transaction costs for third-party reports (appraisal, property condition assessment and Phase I environmental) and lender’s legal fees at $25,000, making these loans affordable for CMBS conduit loans.”
To obtain competitive proposals for your next unanchored retail CMBS conduit loan, contact Mike Sneden at firstname.lastname@example.org, Dennis Suh at email@example.com or Jay Bhakta at firstname.lastname@example.org.