Wells Fargo and life company provide $210m on US retail portfolio

Wells Fargo has teamed up with an undisclosed life insurance company to provide a $210 million financing to Westwood Financial Corporation on its 10-property retail portfolio across five states.

Wells Fargo has teamed up with an undisclosed life insurance company to provide a $210 million financing to Westwood Financial Corporation on its 10-property retail portfolio across five states.

The financing comprises a $110 million 10-year fixed-rate loan from the correspondent life company and a $100 million credit facility provided by the bank.

Joe Dykstra, co-CEO of Westwood, said in a statement that the deal is part of the company’s $1.2 billion consolidation and reorganization and is one of more than 40 deals the company has done with debt advisory firm HFF, which arranged the financing. Part of the loan will be used to “assist in the corporate restructure”, while also refinancing existing loans.

“The life company provided a low-cost, long-term, fixed-rate option using a forward rate lock, and Wells Fargo provided the flexibility needed to bridge assets into a strategic credit facility including a go-forward solution on additional assets,” said Kevin MacKenzie, senior managing director at HFF.

Mercado Del Rancho Market, Scottsdale, Arizona
Mercado Del Rancho Market, Scottsdale, Arizona

The financing includes 10 retail centers in Arizona, California, Kansas, North Carolina and Texas.

The Wells Fargo facility includes four grocery-centered properties, including: the Camelback Village in Phoenix, Arizona; the Mercado Del Rancho Market in Scottsdale, Arizona; the Magnolia Vineland Shopping Center in North Hollywood, California; and Legacy Village in Phoenix, Arizona. This portfolio is 95 percent leased overall.

The life company loan is backed by six assets: the Village Plaza in Phoenix, Arizona; the Plaza Del Rio in Orange County, California; and the Stateline Village in Prairie Village in Kansas City, Kansas; the Steelecroft Shopping Center in Charlotte, North Carolina; the Hebron Parkway Plaza in Carrollton and the Old Town Shopping Center, both in Dallas. The portfolio is 91 percent leased overall.

 

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