How Lenders Are Viewing Grocery Newcomers

Brown: “Lenders are very aware of the changing landscape in retail as a result of e-commerce and are focused on lending on centers that are also adapting accordingly.”

VISTA, CA—Lenders continue to be focused on daily-needs shopping centers and are very sensitive to the credit quality and performance of anchor tenants, Holliday Fenoglio Fowler L.P.  director Greg Brown tells GlobeSt.com. Brown recently led the firm’s debt-placement team, along with real estate analyst AJ Manas and Cohen Financial advisor Mark Strauss, in arranging $37 million in financing for North County Square, a 174,280-square-foot, shopping center in the San Diego-area community of Vista, CA, anchored by an ALDI grocery store. HFF worked on behalf of the sponsor, ValCenters, to place the 10-year, fixed-rate financing with JP Morgan Asset Management. We spoke with Brown about how lenders are viewing some of the newcomers to the grocery sector in Southern California.

GlobeSt.com: How are lenders viewing newcomers to the grocery sector like ALDI as compared to older, more-established brands?