DETROIT – November 18, 2019 – Berkadia today announced the $23.25 million in financing secured for The Shops at Stony Creek, a retail strip center in Shelby Township, Michigan. Senior Managing Director Colin Callaghan and Director Aaron Moll of Berkadia’s Detroit office secured the permanent refinancing on behalf of Michigan-based MJC Homes, Inc., and the deal closed on October 31.
The loan provided the borrower with a non-recourse 10-year fixed interest rate and a 30-year amortization. The loan was also sized to a 75 percent loan-to-value, which provided the borrower with an even greater loan-to-cost as they developed the site in the year prior.
“This is a great execution for our client. The loan provided them an ability to return some equity, remove their construction recourse and put a well-positioned regional shopping center into a permanent loan at a great interest rate,” said Moll. “Despite some of the headwinds we have seen in the capital markets relating to retail centers, we were able to provide an assortment of options to our client on this refinance that ultimately met their needs and added another transaction to a repeat lending partner of ours. We were grateful to be part of this transaction.”
Located at the southwest corner of 26 Mile Road and Van Dyke Avenue in Shelby Township, the property is anchored by LA Fitness, TJ Maxx, Ulta Beauty, Petco and Five Below. The property is shadow anchored by Kroger, which opened its doors in 2017.