Stewart and Morris of Cronheim arrange $30 million for 139,827 s/f shopping center

Andrew Stewart and Dev Morris of Cronheim Morgage Corp. 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. The subject property is a 139,827 s/f neighborhood shopping center located on Merrick Rd., about 1 mile south of Sunrise Hwy. and 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. 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 Stewart, CEO, "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." Founded in 1897, David Cronheim Mortgage Corporation and its affiliate companies located in Chatham, NJ provide an array of real estate services. Cronheim Mortgage maintains correspondent and/or servicing relationships with twelve institutional investors, mostly insurance companies, and currently services in excess of $1,700,000,000 of debt. Unlike many other commercial mortgage banks that lack capital sources in the current environment, Cronheim and its insurance company correspondents have substantial debt and equity capital to invest in quality real estate. Many of Cronheim's current mortgage investors are pricing below alternative debt sources.