Continental Partners has secured $11.3 in financing for the acquisition of Mira Loma Shopping Center, a 102,782-square-foot commercial space in Reno, Nev. The loan is priced at 220 basis point over the 10-year swap rate at 69 percent loan-to-cost. It is structured at 10-year fixed interest, with four-year interest-only payments on a 30-year amortization option. The firm secured the financing on behalf of a Los Angeles-based private investor.
Mira Loma Shopping Center is situated at 3310 S. McCarran Blvd. and provides access to interstates 80 and 580. The retail center was 92 percent occupied at the time of the sale, with anchor tenants including CVS Pharmacy and Scolari’s Grocery, a local grocer. The buyer plans to renovate the property and to remediate environmental contamination issues.
“Lenders continue to take a conservative position when approaching commercial loans, and this is especially true of distressed retail assets, which tend to be viewed as higher risk,” said J.M. Grimaldi, executive vice president at Continental Partners, in prepared remarks. “To secure competitive financing for this property, we demonstrated to potential lenders the strong fundamentals presented by the shopping center, despite neglect from previous ownership, and how the asset would benefit from the Sponsor’s plans to establish a hands-on landlord approach.”
Image courtesy of Continental Partners