COVINGTON, LA-Stirling Properties Inc. has obtained a $27.16million loan to refinance a portfolio of eight Walgreens drugstorestotaling 116,070 square feet.

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Located throughout Louisiana, the properties were completedbetween 2007 and 2010 and average 14,509 square feet perstore. Leases are guaranteed by Walgreens and lease termsrange from 20 to 24 years, according to Kevin MacKenzie, a managingdirector with HFF’s Dallas office who worked on Stirling’s behalfto arrange the loan.

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MacKenzie tells GlobeSt.com that Stirling Properties wanted toplace long-term debt on the properties to replace existingconstruction loans. “The strong sponsorship, good tenant credit andthe number of assets made for an attractive portfolio,” he says,adding that a number of lenders were interested in financing theportfolio.

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Goldman Sachs Commercial Mortgage Capital LP provided thesecuritized loan, which had a fixed-rate of 4.92%. The loan wascross-collateralized by all eight assets, MacKenzie says. “Whilethere were a wide variety of options for the financing, ultimatelyGoldman provided competitive terms and ran an extremely smoothclosing process,” he adds.

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MacKenzie notes the loan illustrates the fact that the CMBSmarket is increasingly active, providing additional options forborrowers. “The credit quality was a driver of the deal,” he pointsout. “Walgreen’s credit is A rated, but due to the amount ofexposure some lenders have to the credit, it was great to have theCMBS market as alternative to traditional lending sources.”

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