Colliers' Bob Kincheloe (above) and Mandy Pakes arranged $10M in acquisition financing for a fully leased San Jose retail center anchored by GolfSmith and a future Walmart Neighborhood Market. They worked on behalf of the borrower, a South Bay family fund, to lock in long-term financing with a regional bank for the acquisition. The non-recourse loan with 30-year amortization and a 10-year fixed-rate term closed in 45 days. Its location at 4070 – 4080 Stevens Creek made the property desirable because it's near Santana Row--a premiere retail destination, Bob says.
Walmart will replace a shuttered Circuit City and won't open until the spring (they need time to get rid of all the unsold Microsoft Zunes and ethernet cables), so what got the lender comfortable without rental income yet in place was the fact Walmart's credit is so strong, he says. There was a bit of back and forth with the liquor license to let Walmart sell booze, but have no fear; PBR will be aplenty. A ton of competition came from life insurance companies, but a regional bank surprisingly won (normally, banks won't compete with the big dogs, he says). Out of the dozen contenders, three or four really went for it, he says. Bob also just closed a $2.7M loan for a Best Buy in Visalia.
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