HFF secures $35.75 million financing for repositioning of grocery-anchored retail center in the Bay Area
NEWPORT BEACH, CA – March 6, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has secured $35.75 million in bridge financing for the repositioning of Rossmoor Shopping Center, a 106,281-square-foot, grocery-anchored retail center in the San Francisco Bay Area community of Walnut Creek, California.
HFF worked on behalf of the borrower, a partnership between Citivest Commercial LLC and Tallen Capital Partners, LLC to secure the three-year, floating-rate loan with two one-year extensions through Los Angeles-based balance sheet lender, Mesa West Capital. Loan proceeds will be used to continue the upgrades and repositioning of the asset, which will be completed in late 2017 or early 2018.
Situated on 15.24 acres at 1900-1998 Tice Valley Boulevard, Rossmoor Shopping Center is located in one of the strongest trade areas in the nation and in a submarket of Walnut Creek with very limited retail competition. The center is situated at the intersection of Tice Valley Boulevard and Rossmoor Parkway, and more than 73,543 residents earning an average annual household income of more than $109,000 live within a three-mile radius of the center. Anchored by Safeway, the center is also home to a variety of national and local tenants, including CVS Pharmacy, JP Morgan Chase Bank, The UPS Store, US Bank and Wells Fargo. The repositioning, which was unanimously approved by the city of Walnut Creek, will increase the square footage of Rossmoor Shopping Center to 133,576 by adding a new drive-through CVS building, three new outparcel buildings and slightly expanding in-line space along with upgrades to the façade.
The HFF debt placement team representing the borrower was led by managing director James Fowler and senior managing director Wally Reid.
“We were very excited to get the opportunity to assist in procuring financing for this outstanding project,” Fowler said. “The business plan to upgrade the center was greatly enhanced by the partnership’s ability to retain and extend the Safeway and CVS leases, along with obtaining city approval allowing for a drive through for the drug store. The center is well poised to enjoy substantial leasing success.”
Citivest is a full service real estate investment company specializing in adding value and achieving excellent returns for its investors through strategic acquisitions, ground-up development, and property repositioning, including renovation, leasing, and management improvements. Learn more at citivestcommercial.com.
About Tallen Capital Partners, LLC
Tallen Capital Partners, LLC, specializes in repositioning retail and mixed-use properties and invests in value added properties located in high growth corridors and coastal communities with high barriers to entry. The firm is led by Terrence Tallen, a 30-year veteran in retail real estate development and investment industry and one of the San Francisco Bay Area’s leading retail acquirers, investors and developers.
About Mesa West Capital
Mesa West Capital (mesawestcapital.com) is a privately held debt fund manager and portfolio lender with more than $4.5 billion in assets under management. With offices in Los Angeles, Chicago and New York City, Mesa West has been one of the leading providers of commercial real estate debt since its founding in 2004. Mesa West provides non-recourse first mortgage loans for core/core-plus, value-added or transitional properties throughout the United States. Mesa West’s lending portfolio includes all major property types with loan sizes ranging from $20 million up to $300 million. Since inception, the firm has sourced and closed more than 245 transactions totaling in excess of $10 billion.
Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.