KeyBank Provides $27M Loan for CA Retail Asset

The owner of the Enos Ranch Center, an approximately 119,800-square-foot shopping center in Santa Maria, used the funds to refinance an existing construction loan on the property.
John Loshbaugh, KeyBank Real Estate Capital
John Loshbaugh, KeyBank Real Estate Capital

KeyBank Real Estate Capital recently provided a $26.8 million CMBS loan for the approximately 119,800-square-foot Enos Ranch Center retail property in Santa Maria, Calif., according to Shopping Center Business.

KeyBank isn’t disclosing the identity of the borrower. However, John Loshbaugh, a vice president with KeyBank Real Estate Capital, told Commercial Property Executive, “The sponsor is a longtime KeyBank client and extremely well respected in the retail sector in Central California.”

Located on 13 acres at the intersection of Betteravia Road and College Drive, Enos Ranch sits within the 114-acre Enos Ranch mixed-use development, roughly 60 miles from Santa Barbara. The retail property welcomed its first shoppers in 2017 and as of late March 2018, it was 97.3 percent leased by 10 businesses. The tenant roster at Enos Ranch includes anchor Dick’s Sporting Goods, which occupies a 40,000-square-foot space, HomeGoods, Petco and Old Navy.

Enos Ranch Center, Santa Maria, Calif.
Enos Ranch Center, Santa Maria, Calif.

The borrower utilized the new 10-year loan to refinance a previous KeyBank construction loan, Loshbaugh said. “Our client was presented with a unique opportunity to develop this property, and while this opportunity came to us at a time when many lenders were feeling headwinds in the retail space, KeyBank was eager to partner again with this exceptional operator to deliver an outstanding project,” he added. “The sponsor’s expertise is evidenced in the strong, complimentary tenant mix, not to mention the extremely full parking lot on opening weekend, as pictured.”

The Enos Ranch loan has a maturity date of June 1, 2028.

Active across property types

While KeyBank may be keen on the retail sector, the real estate finance provider remains active across a range of property types. Recent transactions include the arrangement of a $40.7 million first mortgage loan for a luxury multifamily community in Savannah, Ga. The firm also originated $12.5 million in CMBS, first mortgage loans for a portfolio of three self-storage properties in Colorado and Michigan. Additionally, in Washington, D.C., KeyBank secured a $165 million loan for two Class A office assets.

Image courtesy of KeyBank