PGIM Secures $33 Million Loan for Columbus Retail Center
- Aug 23, 2017
PGIM Real Estate locked in $33 million in financing for Graceland Retail Center in Columbus, Ohio. The two-year loan is part of the company’s core-plus lending strategy, implemented to assist transitional commercial real estate properties with a value-add component. It includes three one-year extension options and a future funding facility for capital improvements.
“This loan on a grocery-anchored retail center will help the sponsor make improvements at the property to achieve its business plans,” said Marcia Diaz, global head of originations at PGIM Real Estate Finance, in prepared remarks. “This financing represents the first of many we would like to realize in the core-plus space. Our expansion will continue through identifying both stabilized and transitional properties that meet our financing criteria.”
Principal Christy Lockridge and Investment Associate Craig Foreman led the transaction on behalf of PGIM. The loan may be a sign that although the fundamentals of the retail segment are considered uncertain, given the strong activity in the e-commerce sector, investors continue to show interest in retail real estate.
Strong financing opportunity
Graceland Retail Center is a 456,021-square-feet property located in a highly-trafficked area just nine miles north from the city’s central business district. It serves the Clintonville and Worthington neighborhoods, due to its proximity to Interstates 71 and 270. The five-mile area boasts a population of more than 650,000 and an average household income of $71,000, according to Casto, the mall owner’s website.
The shopping center has recently gone through a significant expansion to make room for a corporate-owned Target store. Other tenants include Kroger Marketplace, Michaels and LA Fitness.
Image courtesy of Casto