Cronheim Mortgage announces the closing of a $33.5MM mortgage loan for a Fairless Hills Towne Center, grocery-anchored retail center in Fairless Hills, PA. The loan was placed with a leading investment bank and structured with a 7-year term and 30-year amortization schedule after an 18-month interest only period. The perm loan refinanced the bridge loan used to acquire and reposition the property.
The client, a JV between Larken Associates and Red Starr Investments, acquired the 294,000-square foot property in May 2015 with 120,000 square feet of vacancy after Walmart left the center, relocating to a new SuperCenter a couple of miles away. The owner immediately undertook a full property renovation including a new façade, roof and HVAC replacements, parking lot repaving, new landscaping and signage. The cosmetic upgrades and an activist management approach led increased leasing velocity, which resulted in new leases and existing tenant term extensions totaling over 170,000 square feet of space. Additionally, the client converted 35,000 square feet of "dead" retail space in the rear of the former Walmart space to climate-controlled self-storage.