Stewart and Morris of Cronheim Mortgage arrange $30m for Southgate Shopping Ctr.

Andrew Stewart and Dev Morris have arranged financing of $30 million for Southgate Shopping Center. The loan carries a 7-year term. The loan consists of a $10 million fixed rate portion plus a $20 million revolving line of credit divided into two floating rate tranches of $10 million each. The borrower has the ability to take down additional advances on a monthly basis, and can prepay the floating rate portion at any time without penalty. This facility also allows the borrower to fix the interest rate on the floating rate portion at a predetermined, competitive spread over treasuries. The loan carries a 7 year term with the first 5 years interest only. According to Morris, "This was a perfectly tailored structure to meet both the short and long-term needs of a borrower who typically takes a very conservative approach to leverage but would like to have ready access to additional capital should the need arise." The subject property is a 139,827 s/f neighborhood shopping center located on Merrick Rd., about 1 mile south of Sunrise Highway and just west of John J. Burns Park. The center is anchored by a 63,583 s/f King Kullen who recently executed a long-term lease. Other major tenants include the U.S. Postal Service, a new freestanding JP Morgan Chase Bank, and a Curves Gym. In addition, the center features many other national tenants including Starbucks, Hollywood Tanning, Tiger Schulman's Karate, and GNC. The shopping center is located in a dense, affluent residential area with average household income of $116,000 in a one-mile radius. According to Andrew Stewart, CEO of David Cronheim Mortgage Corp., "The property has been the dominant retail destination for neighborhood shoppers since it opened in 1989. The new King Kullen is likely to ensure that nothing changes."