CLOVIS, CA—The Trading Post Shopping Center is located in close proximity to Freeway 168, the newest retail growth corridor in the area. More than two years ago, Jeff Hudson, managing director of capital markets for Walker & Dunlop, arranged a construction line of credit to fund the acquisition, rehab and tenant improvements for the 127,764-square-foot multi-tenant retail property. At the time, the shopping center was only 20% occupied with two unanchored spaces.

The borrower has since renovated, expanded and revitalized the center with national and regional credit tenants, achieving more than 95% occupancy and an impressive increase in activity. It is now anchored and occupied by well-known tenants such as Sprouts Farmer's Market, Ross, Sketchers, Tuesday Morning, Dollar Tree, Pieology, Deli Delicious, Union Bank and others. In fact, the local ABC affiliate's evening news highlighted the property's renovation and transformation success story last year. This is in line with the strength of much of the Central Valley market, says Hudson.

“The Clovis market, as well as the greater Fresno MSA, remains stable for both housing and retail. With unemployment dropping below 8% from as high as 17% in 2010 to 2011, the economic conditions continue to improve,” Hudson tells GlobeSt.com. “With the fall off in retail sales, builders are concentrating on locations with good visibility and high car counts. Hard corners and out pads command the highest rents. For buyers, the critical component remains the current sales per foot and the related trends in occupancy costs.”

With the shopping center achieving full stabilization earlier this year, Walker & Dunlop was again engaged to seek permanent financing on behalf of Rich Development Enterprises LLC. Hudson led the Los Angeles-based capital markets team of Riley Manke and Andrew Westling in securing a 10-year $23.98 million loan.

“We were able to successfully negotiate with the existing lender to convert the floating rate construction loan to a fixed-rate permanent loan without requiring updated third-party reports,” Hudson said. “Our client has done an incredible job with this property and we are thrilled that we were given the opportunity to play a role in this success story.”

Through the first half of 2017, Walker & Dunlop closed 59 retail loans, nearly doubling the number of retail transactions closed in the first half of 2016.

Instant Insights /

From 20% Occupancy to Full in Two Years

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