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How Lenders View Retail Power Centers in SD Today

SAN MARCOS, CA—Pure power-center plays in a secondary location can be more challenging from a financing perspective unless a borrower has a clear strategy for repositioning the tenant base, HFF’s John Chun tells GlobeSt.com.

John Chun Chun: “For 2017, we are seeing capital allocations from a wide variety of capital sources for cash-flowing assets at the same level or higher than their 2016 goals.”

SAN MARCOS, CA—Pure retail-power-center plays in a secondary location can be more challenging from a financing perspective unless a borrower has a clear strategy for repositioning the tenant base, HFF director John Chun tells GlobeSt.com. Chun, along with HFF associate Sebastian Trujillo and real estate analyst AJ Manas, led the retail debt placement team representing Newport Beach CA-based development companies United American Properties Inc. and World Premier Investments Inc. in placing a 25-year, fixed-rate loan with J.P. Morgan Asset Management for the $92-million refinancing of Grand Plaza, a 356,796-square-foot retail power center with a grocery anchor here. We spoke with Chun about the financing market for this type of asset in San Diego and how lenders view this market for retail power centers.

GlobeSt.com: How common is financing for retail power centers in San Diego?

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Carrie Rossenfeld

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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