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UNION GAP, WA-Center Oak Properties LLC and Oaktree Capital Management LLC have obtained a $45-million loan on their Valley Mall property in this Central Washington city located a few miles south of Yakima on Interstate 82.

Center Oak is a Gresham, OR-based developer and redeveloper of shopping centers in the Western US. Oaktree is an institutional money manager based in Los Angeles. The duo obtained the 10-year, fixed-rate 75% loan through GMAC Commercial Mortgage, a conduit lender. Holliday Fenoglio Fowler LP senior managing director Paul Brindley sourced the loan. Brindley declined to provide the exact interest rate on the loan, but anchored retail rates generally range from 145 to 165 basis points over the 10-year treasury.

Located at 2515 Main St., Valley Mall is a 23-acre property that includes a 482,861-sf, recently renovated mall and a 176,915-sf newly developed power center. The property is 93% leased and anchor tenants include, Sears, Bon Marche,and Gottschalks in the mall, and Borders Books, Ross Stores, Old Navy, Linens-n-Things and TJ Maxx in the power center. The new loan pays off the construction-rehab loan.

Oaktree and Center Oak have invested in several projects together and HFF has financed a few of their projects, including Gresham Station in Gresham, OR, which the Center Oak no longer owns, and Mall 205 in East Portland.

In Oregon, Center Oak is currently working with Opus Northwest on the development of a 680,000-sf lifestyle center on a 29-acre former quarry fronting Interstate 5 south of Portland in the City of Tualatin. The development plan is for 40-ft-tall retail buildings wherein mezzanines could be added for more retail space, storage or offices.

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