Arranged $74,000,000 Refinance of a 213,000 SF Retail Center

Mitch Paskover from Continental Funding Group successfully arranged the $74 Million refinance of a construction loan secured by Atlantic Times Square. The borrower requested a non-recourse loan that would refinance a large portion of the construction loan. The loan closed in less than 30 days from start to finish.

Even though the finance market has come back for commercial properties, the market for movie theater anchored centers is still a bit conservative. Most lenders
will UW a theater-anchored center with debt yields between 9-10% based on the T-12 income. A number of lenders who quoted this transaction were coming up
with a loan amount that required the Borrower to put in additional equity at the close of escrow. CFG approached a number of lenders including banks, CMBS lenders and life insurance companies. CFG was able to find a lender that understood the asset and the Borrower’s business plan. The lender lowered their debt yield below 9% to get to a loan amount that would replace a large portion of the construction loan.

Atlantic Times Square consists of a newly-constructed 6-story mixed-use residential over retail project. The project consists of 210 residential condo units situated in three 5-story towers and a commercial component comprised of 213,531 SF of grade-level retail space. The entire project is situated over a 3-level subterranean parking structure that provides parking for 1,650 vehicles. The development is situated on a rectangular shaped parcel totaling 6.94 acres located on the SE corner of N. Atlantic Blvd. and W. Hellmen Ave. in the City of Monterey Park within LA County.

The Borrower leased 2 towers with 50 residential units each as apartments. The subject’s residential component consists of 100 residential units comprised of 40 2-bedroom units and 60 3-bedroom units. The 2-bedroom units range in size from 1,384 to 1,496 SF and develop an average size of 1,437 SF. The 3-bedroom units range in size from 1,615 to 1,939 SF and develop an average size of 1,818 SF. The residential units contain a total net rentable area of 166,560 SF. The residential component is currently 99% leased.

The retail component is currently 94% leased to a mix of retail uses. Anchor units include a 14-screen AMC Theatre (75,000 SF) and a 24-Hour Fitness (30,842 SF). According to information provided by the current ownership, the retail component contains a total of 213,531 leasable SF, of which 107,689 SF is shop space (non-anchor space) and 105,842 SF is anchor space.