Quantum Capital has arranged $22 million in long-term, non-recourse debt to refinance regional shopping centers in Frisco and San Angelo, Texas.
The deals come just one month after Real Estate Capital reported that the advisory firm had arranged more than $74 million in loans.
In the larger of the two most recent financings, Quantum secured a $12.9 million non-recourse permanent loan to replace the maturing debt on Frisco Plaza, a 62,500 sq ft retail center in Frisco. The advisor also secured a $9.15 million permanent loan for a separate real estate investor to refinance Sunset Plaza, a 90,000 sq ft regional power center in San Angelo.
Both fixed rate loans were underwritten at a 75 percent loan-to-value and priced at approximately 250 basis points over 10-year swaps. The financings also included three years interest only, “a difficult task given the properties were located in secondary markets,” according to a statement from Quantum.
Lender concerns included the fact that the retail center is occupied by a single special use tenant represented a large percentage of the rent roll, Quantum said.
On the later deal, “the volatility in the energy sector has made financing non-core real assets in Texas more of a challenge,” added Quantum director Mike Yim, who arranged the financings with partner Jonathan Hakakha
“We were able to mitigate many of the lenders’ concerns by demonstrating our sponsors’ successful track record with each asset along with other industries in the respective markets that would support the centers if the energy sector continued to decline.”
Sunset Plaza is anchored by Target, Bed Bath and Beyond, Petco and Ross. Other major retailers in the area include Lowe’s, Walmart Supercenter, Sam’s Club, Dillards, Home Depot, and Best Buy.