CAPITAL & PRIVATE MARKETS:

A $40 Million Question


The developer of a 200,000 GLA high-end specialty retail center development located in one of the prime Atlanta suburbs needed a buyer. However, the buyer must be one that could stomach a record high $PSF, as well as assume a loan with 40% down.

PLAZA AT WINDWARD   |   $40000000 +/-   |   Alpharetta, GA

The developer of the Plaza at Windward, an “A” project in an “A” submarket, had placed CMBS loans on the each of the properties. Each had different terms and LTVs reflecting the phasing of the project and changing markets for financing. They gave Shane the assignment because of their capital market, as well as private market access to buyers. This became critical as many “capital markets” brokerage houses would be unable to secure buyers, as many public funds they locate could not acquire this asset due to lower percentage of credit tenants, or unorthodox anchors tenants, such as LA Fitness and HH Gregg. This is also because institutions often want to pay cash or have a maximum LTV they can handle, or price per foot parameters.

Shane went after both markets, Private and Public capital, simultaneously. We had many offers from REITS and Funds, and from private buyers from across the country. Ultimately, we located a hybrid—a large private fund from Ohio that had skills and confidence in the high end market with local and regional credit. They were in a 1031 exchange, and more importantly had the executives who were willing to personally sign on the lenders “carve outs.”

The transactions were closed successfully, and the Sellers harvested significant capital to be deployed in other profitable projects.