NEW YORK CITY—Johnson Capital, based here, and Better Commercial Mortgage Inc. have arranged a $62.375-million refinancing for a multistate portfolio of five retail properties. Located in California, Colorado and North Dakota, the properties total 734,199 square feet.

Daniel H. Lisser, principal and senior managing director in Johnson Capital's New York City office, led the financing, a 10-year non-recourse loan provided by a CMBS lender with a fixed rate in the high 4.0% range with a 30-year amortization schedule. The transaction entailed the borrower defeasing three loans and paying off two others to lock in low long-term rates.

Johnson Capital did not identify the borrower, a Calabasas, CA-based owner of retail properties nationwide. Industry data indicate that it is Primero Management.

Largest property in the portfolio is Gateway Fashion Mall in Bismarck, ND, an indoor regional mall that contains 330,038 square feet and is anchored by a Sears and a multiscreen Carmike Cinemas location. Lately, the property has been morphing into more of a medical/retail center, says Johnson Capital, with major medical tenants including the St. Alexius Medical Center, Mid-Dakota and the Veterans Administration. At funding, the property was 84.07% occupied.

Front Gate Plaza Shopping Center,located in Lancaster, CA, is a 121,983-square-foot grocery-anchored retail center, anchored by a Stater Brothers Supermarket, Goodwill Industries and an In-Shape Fitness that is under construction.  At funding, the property was 98% occupied by a mix of national and local tenants.

Pueblo Shopping Centerin Pueblo, CO is anchored by a King Soopers Supermarket, part of the Kroger family of brands. The center contains 106,276 square feet and is also anchored by a Dollar Tree and Tuesday Morning.  At funding, the property was 95.0% occupied by a mix of national and local tenants.

Rounding out the portfolio are the 87,489-square-foot Foothill Plaza Shopping Center in Rancho Cucamonga, CA and Orange Plaza Shopping Center in Redlands, CA, a grocery-anchored retail center of 81,777 square feet. They had occupancy rates of 96% and 95%, respectively, at funding.

“Due to coordinating three defeasances and paying off two other loans in three states, our focus was on finding a lender who could understand the strength of each property and the individual markets, and give credit for the new tenants that had executed leases but had not yet taken possession,” Lisser says. “In the end, we ended up with a lender that became comfortable with all of the properties, and the different markets, and who worked diligently to meet tight timelines to close.”