ValueXpress has arranged a $7.15-million CMBS conduit loan for the refinance of two free-standing drugstores, a Walgreens located in Glendora, N.J. and a Rite Aid located in Whiteville, N.C. Since the properties were under common ownership, the loan was made to two separate entities, but was cross collateralized.
The Rite Aid, located at 1728 S. Madison Avenue, Whiteville, North Carolina, began its life in 2004 as an Eckerd Drug Store. Rite Aid purchased Eckerd Drug Stores in June 2006 and rebranded the stores that it kept (such as this Whiteville store, while some stores were sold to CVS) to Rite Aid and this location remains a Rite Aid today.
The second store is a Walgreens located at 1301 Black Horse Pike, Glendora, New Jersey.
“The transaction was a challenge as both locations reported declining sales over time. Both have been affected by newer competition from Walmart and Sam’s Club,” commented Michael D. Sneden, Executive Vice President of ValueXpress.
“We were able to get the transaction completed by properly structuring the loan to include a full cash flow sweep of the tenant rent to pay down the loan in the event that tenant sales fall below prescribed levels,” said Lawler Rodgers, a Commercial Capital Training Group graduate and President of Rockfish Funding, the mortgage broker on the transaction. This transaction represents the third deal that Lawler has completed with ValueXpress, and a fourth deal is approved and ready to be funded in the beginning of September.