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LAKE ELSINORE, CA-Sudberry Properties Inc. has taken out its construction loan on the 136,000-sf Canyon Hills Marketplace and has replaced it with a $14.3-million permanent refinancing via the San Diego office of Holliday Fenoglio Fowler. Director Aldon Cole in the San Diego office of HFF reports that the financing is a 10-year, fixed-rate securitized loan with Bank of America CMBS Capital Markets, a conduit lender.

Cole notes that a “wide variety of capital sources” were interested in competing for the new loan, which replaces a construction loan from Bank of America for the class A shopping center development. “We were able to achieve sub-100 base-spreads, plus integrate additional structure, some of which included a longer than typical ‘open period’ at the end of the term in order to meet Sudberry’s long-term investment strategy,” Cole comments. He adds that the deal provided maximum loan proceeds from the outset, based on future lease-up of the center.

Canyon Hills Marketplace is situated on 22 acres off of Railroad Canyon Road in Lake Elsinore, near interstates 15 and 215. The first phase of the two-phase development was completed in August and, in total, the retail center comprises 15 buildings, seven of which are included in the financing.

The first phase of the center is approximately 93% occupied. Its tenants include Bank of America, Carl’s Jr., Jack in the Box, Longs Drugs, Panda Express, Starbucks and Subway.

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