COSTA MESA, Calif.--()--Costa Mesa-based shopping center developer Donahue Schriber announced the completion of a successful $248,545,000 refinancing of a cross-collateralized portfolio of ten (10) retail properties: nine (9) in California and one (1) in Nevada. CB Richard Ellis’ Capital Markets Debt & Equity Finance group secured the funding for the transaction, led by Sharon Kline of CBRE Capital Market’s Newport Beach, Calif. office. Allstate Life Insurance Company provided the $204,700,000 fixed-rate portion of the financing and Allstate Insurance Company provided the $43,845,000 floating-rate portion on behalf of Donahue Schriber Realty Group, L.P. Craig Zarro of Preferred Capital Advisors based in Sacramento, Calif. served as advisor on behalf of Donahue Schriber.
“Allstate was able to provide a streamlined process for refinancing these core assets for us and the CBRE Capital Markets team stepped up to efficiently work with us toward the common goal of finalizing this transaction.”
Both the fixed and floating rate portions carry a 6-year loan term with 12-months of Interest Only payments followed by a 25-year amortization. The new financing maintained the flexible structure of the original loan including substitution and partial release rights.
The retail portfolio consists of 10 core Donahue Schriber shopping centers built between 1985 and 2000 with a combined net rentable area of 1,315,425 square feet. At the time of financing, average occupancy of the properties was 97.7%. All of the assets are grocery anchored, except for Natomas Marketplace, which is a power center. The individual properties included in the funding are listed below:
- Aliso Pacific Plaza, Aliso Viejo, CA – 112,532 SF anchored by Ralphs, CVS Drug, and Pep Boys.
- Callen’s Corner I, Fountain Valley, CA – 103,466 SF anchored by Albertson’s.
- Callen’s Corner II, Fountain Valley, CA – 48,650 SF Phase II shop space.
- Eldorado Village, North Las Vegas, NV – 93,216 SF anchored by Smith’s.
- Gold River Town Center, Rancho Cordova, CA – 139,470 SF anchored by Bel Air Market and Rite Aid.
- Natomas Marketplace, Sacramento, CA – 236,061 SF anchored by Staples, Petsmart, Regal Theatres, Michael’s and Ross Dress For Less. Shadow anchors include Home Depot, Wal-Mart, Shell Oil, and several restaurant pads.
- Portola Village, Livermore, CA – 91,646 SF anchored by Save Mart.
- Raley’s Plaza, Fairfield, CA – 95,441 SF anchored by Raley’s.
- Roseville Center, Roseville, CA – 96,750 SF anchored by Petco and Big 5 Sporting Goods. Shadow anchors include Target and Raley’s.
- The Marketplace, Bakersfield, CA – 298,193 SF anchored by Vons, Rite Aid, Edwards Theatres and Talbot’s.
Lawrence P. Casey, President and COO of Donahue Schriber, stated that the company elected to refinance the portfolio a year early in order to take advantage of historically low interest rates. Casey added that, “Allstate was able to provide a streamlined process for refinancing these core assets for us and the CBRE Capital Markets team stepped up to efficiently work with us toward the common goal of finalizing this transaction.”
“We’re very pleased to retain the financing of this grocery-anchored retail portfolio and to build on our long-standing relationship with Donahue Schriber,” said David Kocourek, senior portfolio manager with Allstate, the nation’s largest publicly held personal lines insurer known for its “You’re In Good Hands With Allstate®” slogan and now celebrating its 80th anniversary as an insurer.
Sharon Kline of CBRE Capital Markets, Inc. stated that the transaction allowed Donahue Schriber to take advantage of today’s favorable rate environment and extend the maturity of the pool.
About Donahue Schriber
Donahue Schriber has been involved in nearly 32 million square feet of retail properties within its 42-year history. Structured as a private REIT (Real Estate Investment Trust), the firm owns and/or operates a portfolio of 81 neighborhood, community, community lifestyle and power shopping centers representing over 12 million square feet throughout California, Nevada, Arizona and Oregon. For more information about the company, visit its website at http://www.donahueschriber.com.
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