Phoenix & Southwest + Phoenix + Retail | November 15, 2023

Gilbert Towne Center investor secures $81M refi

Mega Furniture Secures $81M Refi for Gilbert Shopping Center

Two years after purchasing the Gilbert Gateway Towne Center, Mega Furniture has obtained an $81 million refinancing on the property.

Commercial Edge reports CBRE arranged the senior loan with fixed interest rates for 5 years. The financing was structured on an interest-only basis for the entire 5-year term to maximize cash flow. CBRE’s Shaun Moothart led a team that secured the non-recourse financing.

Mega Furniture purchased the Class A asset in 2021 from Vestar. The $50.2 million transaction also involved a $37.7 million acquisition loan from Oceanview Life.

Completed in 2005 on Power Road in Gilbert, Gilbert Gateway Towne Center’s tenant roster features a mix of more than 40 national retailers including Ross, PetSmart, Michael’s and Cost-Plus World Market. Vestar still serves as property manager.

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About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

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