SIMI VALLEY, CA—Tremont Realty Capital has provided a $65.6 million bridge loan through one of its separately managed accounts to recapitalize the Simi Valley Town Center, a 348-061-square-foot shopping center in Simi Valley, CA. The lender closed the loan in only one week to meet the borrowers needs, and cited the strong retail market in Simi Valley as the impetus to fund the loan and close quickly.
A joint venture between developer Alberta Development Partners and a real estate investment fund owns the property and secured the loan. The bridge loan has a three-year interest only term, with an initial $30,000,000 in funding and future capital commitments of $35,600,000 for renovations and tenant improvements, as well as other soft costs.
According to Tremont Realty Capital, the borrower proved the strength of the market in order to secure the funds. Additionally, the first phase of the building renovation was already complete, which minimized or eliminated the construction risk. The owners had recently completed 54,000 square feet of new leasing on the property, including the addition of three junior anchor tenants, bringing the occupancy to 83%. The center is anchored by a Macy's and has a tenant mix that includes Studio Movie Grill, Apple, Victoria's Secret, Buffalo Wild Wings and California Pizza Kitchen. As a result of the strength of the retail market and the newly signed leases, the loan closed within a week of the regional lease signings.
GlobeSt.com was not able to connect with Tremont Realty for comment. Eastdil Secured served as the mortgage broker for the transaction.
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