MONROVIA, CA-Huntington Oaks Delaware Partners LLC has landed a $51-million, 10-year, interest-only loan to refinance its Huntington Oaks Shopping Center in this San Gabriel Valley city, according to Irvine-based Avalon Financial Group Inc. The property is a 328,335-sf center at 1321 S. Mayflower Ave.Jeff Randolph, president of Avalon, says the deal "pushed the envelope" by providing interest-only financing for a commercial property. Randolph tells GlobeSt.com that the purpose of the refinancing was two-fold. The center's ownership wanted to lock in a lower interest rate and also to draw cash out in order to invest in other real estate projects.Randolph says that the fixed-rate loan, through Wachovia Securities, is at a "very favorable" rate and replaces an older fixed-rate loan. The rate for the new loan is fixed over Treasuries at "a very competitive spread," he says.These types of loans are difficult to obtain, Randolph says, but the Huntington Oaks Shopping Center is "an exceptional asset." It's location is on Mayflower Avenue where the 210 Freeway meets Huntington Drive.Besides the high visibility location, the center's owners also landed the loan because of the 23-year-old property's successful track record of maintaining high occupancy. Its tenants include Toys "R" Us, Marshalls, Bed Bath & Beyond and Mervyn's, along with restaurants and specialty stores.Randolph notes that the center played a vital role in the redevelopment of Monrovia by attracting business and developers to the San Gabriel Valley and generating significant sales tax revenue for the city.
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