Retail

George Smith Partners arranged construction debt for 11,000 square feet of in-line retail pads; 4 tenants total, 2 in each pad. The pads are located adjacent to a newly built 400 unit luxury apartment complex next to an 840,000 square foot regional shopping center anchored by Whole Foods, Costco and over 70 shops and several restaurants. This pad development caps off three years of new development on this adjacent parcel including the Costco and apartment complex. The challenge was finding a bank willing to “dust off” their retail construction hat as virtually no new retail has been built ground-up since the credit crisis. The loan also provides a well-priced mini-perm upon stabilization as the recourse will be reduced to 25% and the interest only LIBOR based coupon is estimated to be sub-3% for several years.