LA PUENTE, CA—The owner of the Sunkist Shopping Center has secured an $11.4 million CMBS loan to refinance. The shopping center is currently under construction and lease commencement with a national credit tenant. Walker & Dunlop, who secured the funds on behalf of the borrower, structured the loan so that the portion of the property that was under construction was removed from the collateral.

“We effectively looked at the property, and identified that they were going to re-tenant this pad. Instead of making a decision ahead of time, we decided to leave that open,” Mark Grace, VP at Walker & Dunlop and the originator of the loan, tells GloebSt.com. “The property's debt coverage and the underwriting worked with or without that tenant's income. So, we excluded that parcel by putting it into its own parcel, and now the owner has a free and clear national credit tenant lease.”

The 170,084-square-foot shopping center was originally built in 1948, and was renovated in 1974 and 1985. A Rite-Aid and Big Saver Supermarket anchor the property. In addition to the unique loan structure, Grace was also able to secure the funds in an accelerated timeframe of 30 days, which reduced significant interest risk rate to the borrower.