CBRE Completes $2.5M Mortgage Refinancing for Community Retail Center

On Jul 18, 2014

CBRE Group Inc., New Jersey’s largest commercial real estate brokerage firm, announces that its Debt & Structured Finance team completed a $2.5 million first mortgage refinancing secured by The Avenue Plaza, a community retail center in New Hartford, NY.

The CBRE team of James Gunning, Donna Falzarano, and Evan Kleppe arranged the refinancing for a 10-year term at a sub-5% interest rate through a life insurance company, on behalf of the Borrower, Goodrich New Hartford LLC.

The loan refinanced existing debt on the 168,561-square-foot, Kmart-anchored, suburban retail center, located on Commercial Drive.  Although a potential roll by Kmart is possible within three years, the lender recognized that the company’s long-term tenancy and below-market rent substantially mitigates the leasing risk.

The Avenue Plaza, which is currently 93%-occupied, was developed in 1972 and is situated on 19 acres. The improvements consist of the Kmart store and an adjacent strip center that contains the in-line tenants. Additional notable tenants include Chuck-E-Cheese, Sally Beauty, Subway, Supercuts and Adirondack Bank, many of which have occupied the building for more than 10 years.

The New Hartford area of Oneida County is the prime retail destination for residents in the region, as it offers 16 retail centers that range from 10,000 – 850,000 sq. ft.

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