Donahue Schriber Refis 10 Centers for $249M

The Marketplace, Bakersfield

(Mark Your Calendars: RealShare Orange County, August 18 in Newport Beach).

COSTA MESA, CA-Locally based shopping center owner and private REIT Donahue Schriber has refinanced nine properties in California and one in Nevada totaling more than 1.3million square feet with $248.5 million in funding arranged by CB Richard Ellis' Capital Markets Debt & Equity Finance group. The CBRE team was led by Sharon Kline of CBRE Capital Market's Newport Beach office. Allstate Life Insurance Co. provided the $204.7 million fixed-rate portion of the financing and Allstate Insurance Co. provided the $43.845 million portion on behalf of Donahue Schriber Realty Group LP. Craig Zarro of Sacramento-based Preferred Capital Advisors served as adviser on behalf of Donahue Schriber. Both the fixed and floating-rate portions carry a six-year loan term with 12 months of interest-only payments followed by a 25-year amortization. The new financing maintained the flexible structure of the original loan, including substitution and partial release rights.

Roseville Center

The 10 shopping centers were built between 1985 and 2000. At the time of financing, average occupancy of the properties was 97.7%.

Lawrence Casey, president and COO of Donahue Schriber, said that the company elected to refinance the portfolio a year early in order to take advantage of historically low interest rates. Kline of CBRE Capital Markets noted that the transaction allowed Donahue Schriber to take advantage of today's favorable rate environment and extend the maturity of the pool.

All of the assets are grocery-anchored, except for Natomas Marketplace in Sacramento, which is a power center. The individual properties included in the funding are all in California except for the 93,216-square-foot Eldorado Village, North Las Vegas.

The California properties and their square footages are: Aliso Pacific Plaza, Aliso Viejo, 112,532 square feet; Callen's Corner I, Fountain Valley, 103,466 square feet; Callen's Corner II, Fountain Valley, 48,650 square feet; Gold River Town Center, Rancho Cordova, 139,470 square feet; Natomas Marketplace, Sacramento, 236,061 square feet; Portola Village, Livermore, 91,646 square feet; Raley's Plaza, Fairfield, 95,441 square feet; Roseville Center, Roseville, 96,750 square feet; The Marketplace, Bakersfield, 298,193 square feet.