Centerline Capital Group Closes Conduit Financing of Retail Center
- Nov 26, 2012
New York—Centerline Capital Group, traditionally a provider of real estate financial and asset management services for affordable and conventional multifamily housing, and a subsidiary of Centerline Holding Company, announced it has closed on its first non-multifamily financing after recently re-entering the CMBS loan market. With the addition of CMBS to its loan offerings, Centerline now is able to structure and offer financing for a broader spectrum of real estate asset classes, including: industrial, office and retail.
Centerline announced its continued expansion into the CMBS market with a transaction in the retail sector. The $2.7 million CMBS loan was used for the acquisition of a 14,564 square foot single-tenant retail building located at 1501 N. Main Street in Findlay, Ohio. The property is 100 percent occupied by a Rite Aid drugstore that includes a drive-thru pharmacy, one-hour photo processing, a food mart and a GNC Live Well Store. Rite Aid is the third largest drug store chain in the U.S. with 4,667 stores and $26.1 billion in sales revenue as of fiscal year 2012. The borrower is a newly formed, single-purpose entity.
The property is leased to Rite Aid through August of 2027, which is nearly five years past the end of the loan term. The long-term lease also includes four, five-year renewal options at the end of the initial lease term, and includes a corporate guarantee by Rite Aid Corporation.
The deal was brought to Centerline by Ryan Porter of Cohen Financial.
Centerline is a Fannie Mae DUS lender, Freddie Mac seller-servicer, FHA-approved mortgage provider and conduit and bridge lender.