Hunt Real Estate Capital provided a first mortgage bridge loan in the amount of $10 million to refinance a retail center located in Goldsboro, North Carolina.
Ashley Plaza is a 60,462 square foot retail community center located at 101-225 North Berkeley Boulevard. The property was built in 1977 and renovated by the borrower in 2017. The property consists of three buildings situated on a 16.2-acre site. It is currently 52.4% occupied and 83.6% leased to 11 tenants ranging in size from 1,400-50,000 square feet. Ashley Plaza is currently anchored by Planet Fitness, Ashley HomeStore and Citi Trends. Other national tenants include Chuck E Cheese, East Coast Wings, and T-Mobile. The property features 609 parking spaces.
The loan facility will refinance the existing loan, fund a reserve for outstanding leasing costs, and create a future fund for tenant improvements.
“Since acquiring Ashley Plaza, the borrower has focused on remodeling the shopping center and improving the tenant roster and has invested approximately $1 million on capital expenditures and approximately $1.73 million on leasing costs to date,” commented Ted Nasca, Managing Director at Hunt Real Estate Capital. “Two former anchors –Save-A-Lot and Kmart – permanently closed their stores in 2016 and once those spaces opened up, tenant demand for the vacant big box space was strong.”
“The sponsor’s primary focus is on anchored shopping centers in secondary and tertiary markets,” added Nasca. “Over the past fourteen years, they have acquired 160 properties in 28 states and have been actively marketing and improving this well-located property. We were pleased to partner with them on this deal.”
The property is located on the northwest corner of a strong intersection with clear visibility, good access, and excellent frontage on Berkeley Blvd, the main retail corridor in the region that features Super Walmart, Target, TJ Maxx, Lowe’s Home Improvement, Sam’s Club, Dick’s Sporting Goods, PetSmart, Belk, Dunham Sports, Family Dollar and Walgreens. The availability rate for the local retail market has averaged at a low rate of 6.9% for the past five years