HFF Secures $165M in Financing for 2 MSF Retail Portfolio in Pennsylvania, Ohio

A 1.9 million-square-foot collection of four retail properties in metropolitan Pittsburgh and the greater Toledo region has reeled in $165 million in financing.
The Waterworks, Pittsburgh

The Waterworks, Pittsburgh

A 1.9 million-square-foot collection of four retail properties in metropolitan Pittsburgh and the greater Toledo region has reeled in $165 million in financing. Portfolio owner J.J. Gumberg Co. relied on HFF to secure the funds, and the commercial real estate and capital markets services firm came through with two loans from two sources.

CorAmerica Capital L.L.C. provided a floating-rate loan on one of the properties, and joined forces with JP Morgan Chase Bank N.A. to furnish a fixed-rate loan on three of the assets.

“We had a lot of interest from the CMBS community,” Gerard Sansosti, executive managing director with HFF, told Commercial Property Executive. “We selected the group that we closed with because they provided a structure that met the borrower’s expectations.”

The Clearview Mall in Butler, Pa., is the largest of the four properties at 760,000 square feet, followed by the 640,000-square-foot The Waterworks in Pittsburgh.  The last of the Pennsylvania properties, as well as the smallest in the portfolio, is the 130,000-square-foot North Huntingdon Square in North Huntingdon. And rounding out the group is Northtowne Mall, a 385,000-square-foot center in Defiance, Ohio.

Together, the properties have an average occupancy level of more than 97 percent.

While a high occupancy is always a big plus in the pursuit of financing, the J.J. Gumberg portfolio’s nearly full-tenant roster was not the only attribute that caught the attention of lenders. “Multi-family is still at the top of everyone’s list, followed by grocery-anchored retail. In the three-property portfolio transaction, two of the properties were anchored by the dominant grocer in Western Pennsylvania, which was very attractive to the lenders,” Sansosti said.

And there were additional factors that proved irresistible. “All four properties have a long history of strong performance, and the borrower is very strong and very experienced in the retail industry,” Sansosti added.