The Prudential Mortgage Capital Co. financing is a three-year bridge loan with a floating interest rate, starting out at about 4%, that will roll to a permanent vehicle when the center "hits certain occupancies and clears cash flow hurdles," Joe Hevey, managing director in Dallas for Holliday Fenoglio Fowler LP, tells GlobeSt.com. Retail Plazas, led by Jeffrey C. Olyan of Dallas, acquired the 25.5-acre asset, excluding the Mervyn's, two years ago from New York City-based Reliance Insurance.
Hevey says the occupancy made the deal challenging to complete, but there were several lenders willing to stake the repositioning for the regional center at the intersection of Green Oaks and Ridgmar Meadow boulevards. Prudential, he says, "gave him (Olyan) the most flexibility." Part of the capital also retired old debt.
All Hevey can say about the pool is that "a substantial amount" has been set aside for leasing commissions and tenant build-out. "He's got the time and the capital to put some new tenants in the space," he emphasizes about the owner's recovery push.
Ridgmar Town Center's roster includes Ross Dress for Less, Oshman's PetsMart, Half Price Books, SAS Shoes, Ridgmar Cinema Tavern and an assortment of national and local names running the gamut from insurance agencies to eateries. Names removed from the marquee, and the root of the problem, included Drug Emporium and MJ Designs, Hevey says. The quoted rents for available spaces range from $8.75 per sf to $16 per sf.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.