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BAY SHORE, NY-GE Real Estate has provided a $30.1-million, 10-year fixed-rate, interest only loan, at 80% LTV, to Milbrook Properties Ltd. for the acquisition of the 118,000-sf, grocery-anchored Bay Shore shopping center. The property is located on the Montauk Highway, a major high-traffic Long Island thoroughfare.

The Bay Shore shopping center is 100% occupied, anchored by a newly expanded and remodeled 60,000-sf Super Stop & Shop supermarket. In addition, the property boasts regional and national tenants, including Eckerd, Dunkin’ Donuts and Blockbuster.

This transaction demonstrates the emphasis GE Real Estate places on building strong customer relationships. “GE rate-locked this deal even though we were in the middle of the sub-prime lending implosion,” says the broker, Paul Greenbaum of GCP Capital Group LLC.

David Cohen, regional director with GE Real Estate notes that, “in spite of the changes that occurred in the financing market during this deal, those relationships were our top priority. We want to continue to be a dependable financing partner.”

Cohen explains to GlobeSt.com that, “at the time that we actually rate locked the deal, the subprime market went into turmoil and several of our competitors either were not rate locking transactions or were increasing their spreads by 20 plus basis points… .And obviously during this turmoil, there was a lot of uncertainty and volatility with the widening of CMBS spreads.”

“Other lenders were changing terms as the availability of long-term, interest-only products in this market quickly evaporated,” adds Rubin Pikus, CEO of Milbrook Properties. “GE could easily have backed out of their commitment, but they didn’t. They delivered and closed on every detail, exactly as promised.”

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