PALO ALTO, CA—CBRE Capital Markets' Debt & Structured Finance team has arranged $16 million in non-recourse financing for Edgewood Plaza Shopping Center, a 35,000-square-foot retail center in Palo Alto.
John Nelson of CBRE's San Francisco office arranged the financing on behalf of the borrower, a Sand Hill Property Company affiliate. The financing was provided by a Wall Street lender and was used to refinance the property.
Of the financing, Nelson commented, "Edgewood Plaza's infill location in Palo Alto—with high barriers to entry—led to a fast leasing of the center. This, combined with Sand Hill's development expertise, led to very favorable long-term financing.”
Anchored by The Fresh Market grocery store, Edgewood Plaza Shopping Center is adjacent to the Interstate 101 onramp. The recently completed center has signed leases with several tenants including Chase Bank, Starbucks and Palo Alto Bagels, and will cater to the numerous surrounding residential neighborhoods.
According to CBRE Econometric Advisors, the San Jose/Silicon Valley retail market is currently very strong. Vacancy rates are below 5.0% and continue to decline, while rental rates continue to increase. Retail sales in the San Jose market have grown at an annual rate of 6.8% and are forecasted to grow at an annual rate of 4.0% over the next five years.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
