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Low-Occupancy VA Retail Centers Score $8M Acquisition Loan through Eastern Union
Eastern Union Funding has arranged an $8.2-million loan for the new owner of South Crater Square and Pinehill Plaza retail centers in Petersburg, VA. The centers are situated opposite each other on South Crater Road.
Marc Tropp, a senior managing director with Eastern Union, arranged financing for the acquisition, which carried an overall price of $10,250,000. The borrower is Pikesville, MD-based America’s Realty.
The acquisition component of the loan — equaling $7.7 million — represented a 75% LTC ratio. A traditional, balance-sheet lender bank provided an additional $500,000-loan toward tenant improvements and leasing commissions. This loan element was held back for future use once the properties have leased additional space.
Overall occupancy of the two assets equals 59% percent, with South Crater Square at an 83% rate and Pinehill Plaza at an occupancy level of 29%.
The interest rate on the full-recourse loan equaled 3.6% over a five-year term, with 12 months of interest-only payments.
- ◦Sale/Acquisition
- ◦Financing
