Dress For Less, Get A Loan

Colliers' Bob Kincheloe arranged a $14M CMBS loan for a Ross-anchored retail center in Modesto. The 118k SF site called The Promenade also houses Sports Authority and Barnes & Noble, but its tenants used to be a lineup of now defunct stores. (Circuit City, Hollywood Video and Copeland Sporting Goods all filed Chapter 11 bankruptcy.) The long-term owners were able to re-tenant the spaces, allowing Colliers to create competition among the CMBS lenders on the loan. The lender that won the deal was Goldman Sachs. Bob offers an interesting tidbit related to a former dry cleaners on site. The owners completely cleaned up the site and received a No Further Action Letter (NFA) in 2006, but the regulators opened a new case in 2011 citing new environmental regulations and concerns of “soil vapors.” Colliers had to get a “lender” environmental insurance policy to close the loan.

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