OLNEY, MD-Carl M. Freeman Cos. has secured a $31.2-million loan to refinance the construction financing it took out to renovate Fair Hill Shopping Center. The renovation was extensive, Walker & Dunlop SVP David Redmond tells GlobeSt.com, but the project was a secure one for lenders given its location and Carl M. Freeman Cos.’ reputation. Walker & Dunlop secured the loan for the firm.

The latter factors also led to favorable terms from the lender, RBS Citizen. It was structured with a ten-year term with one-year interest only followed by a 30-year amortization schedule. Two years ago, of course, IO was anathema to lenders. That has been changing, although certainly not every project can secure IO financing, Redmond says. “We are working on projects now where we are trying to get IO financing and for some we will. It is not super commonplace, but for an asset of Fair Hill’s quality, it is available. He adds that there were a number of lenders interested in the center.

Fair Hill Shopping Center is an open-air, 110,072-square-foot complex that is 97% leased. It is anchored by Harris Teeter and includes many national and regional tenants including PNC Bank, Capital One Bank, TD Bank, Panera Bread, and The Greene Turtle restaurant.

There was a movie theater and deli at the site, but the renovation included tearing that part down and replacing it with a Harris Teeter, Redmond says. It helped with the financing, in fact. “Lenders are looking for grocery-anchored retail assets," says Redmond. "They like them very much.”