Boston, April 3, 2017 – Colliers International, Boston announced that it recently arranged $9.65 million in acquisition financing on behalf of a Rhode Island-based investor for the Town Center Shoppes in Oviedo, Florida, part of the Orlando MSA. The 64,547-square-foot regional shopping center, built in 2000, is anchored by LA Fitness, one of the largest health club chains in the country, and is 96% leased to a mix of national, regional and local tenants. Located at 1999 E. Mitchell Hammond Road, Town Center Shoppes is positioned adjacent to a 108-acre mixed-use site, currently under construction and that will consist of a 5-acre community park, retail, office, and 775 multifamily units. Colliers secured the acquisition financing, a 10-year fixed-rate, non-recourse, interest only loan, from LoanCore Capital.
"This deal reflects the reality that CMBS debt is steadily, if slowly, regaining favor," said Thomas Welch, Senior Vice President at Colliers International, Boston. "Given the ten-year interest only structure and low interest rate, the borrower’s debt constant was several hundred basis points inside of the acquisition cap rate, generating very favorable cash on cash returns on the reinvestment of profit into a stabilized asset."
The financing was arranged by Thomas Welch, Adam Coppola, John Poole, and Tonia Jenkins.