$14.5MM – 8.5% Debt Yield
Cash-Out Refinance of a
Community Shopping Center
230,000 sf Community Retail Center Refinancing
10/30, non-recourse, fixed-rate financing
Cash out above borrower’s cost basis
Cronheim Mortgage secured a cash-out refinance in the amount of $14,500,000 for Village Shopping Center in Davenport, Iowa. After acquiring the property in early 2014 – only 70% leased and in need of re-branding – the borrower completed a full cosmetic upgrade, stabilized near-term lease rollover and brought in new tenants including a new anchor, Ross Dress for Less. With the financing, the borrower was looking to monetize its value creation and stabilize the center with long-term financing.
Cronheim successfully achieved a cash out over the borrower’s total cost basis even though a major tenant had not yet opened for business and the center had not reached stabilized occupancy.