Developer Obtains Funding for 133,000-SF Plainville Commons

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PLAINVILLE, MA-Newton-based National Development has obtained a $16.5-million loan for construction of Plainville Commons Shopping Center on Taunton Road. A Stop & Shop and TJ Maxx will anchor the 133,000-sf center, which is located at the intersection of Interstate 495 and Route 1.

"The loan is a true construction, permanent loan," according to Sean McKenna, a director in the Boston office of LJ Melody & Co. He, along with Phil Ward, managing director of LJ Melody for the Northeast, arranged the financing from Cigna.

"It is an 11-year loan," McKenna says, adding that it provides the borrower with interest-only payments for the first 12 months of the loan term. It then converts to a permanent loan after the shopping center is built and the major tenants take occupancy. "The borrower was able to take advantage of today's low interest rate environment as opposed to having to gamble on where rates will be for a permanent loan once the project is built," he explains. McKenna declined to tell GlobeSt.com the interest rate or the loan-to-value ratio of the funding.

The center is shadow-anchored by an existing 142,000-sf Target on an adjacent site, which is owned by the retailer. The Plainville Commons' plan also calls for small-store space and a restaurant outparcel. The center is expected to reach completion this November.