Cheltenham, PA– January 19, 2015: Capping off a break-out year with one of its largest retail deals in Q4, Eastern Union Funding’s Eli Breiner negotiated an acquisition loan for Cheltenham Square Mall in the Wyncote section of Cheltenham.
Breiner structured a two year bridge loan with a floating rate without recourse, a unique loan product in which stabilized retail meets rehab and all costs are serviced by the same debt. The loan was provided by a national balance sheet lender.
The 85-unit, 634,000 square-foot mall is anchored by big-box tenants, including Burlington Coat Factory, The Home Depot and Shop Rite. It was purchased out of receivership and is emblematic of the increasingly outdated big-box mall.
Sun Equity Partners, a new-market, New York-based shop which has successfully turned around thousands of similarly distressed residential and retail units, has purchased the retail product for $30 million and will renovate to essentially “de-mall” the asset, opening outparcels and repositioning the property as an in-line shopping center.
The deal, however, is not entirely a construction story, as the anchor stores and occupied shops continue to generate proceeds.
Sun Equity Partners won’t merely keep Cheltenham afloat. According to Breiner, “they will blow it out of the water and realize the potential that wasn’t allowed by outdated retail strategies and a slumping economy.”
This won’t be the first successful deal of its kind for Sun Equity Partners, which owns over 10 million square feet of combined real estate throughout the country. A recent accomplishment occurred in Howell, NJ, where the company is in the final phases of construction for a planned BJ’s Wholesale.
That property had been in a holding pattern for over ten years before Sun Equity Partners broke ground, a feat in its own right which two previous owners were unable to accomplish. As of Friday, the Howell BJ’s Wholesale was open for business, and the owner was quoted commending Sun Equity Partners for the timeliest execution for the franchise that the owner had ever witnessed.
Breiner also arranged financing for that and dozens of other Sun Equity Partners’ deals.
“Cheltenham makes a lot of sense for my client,” Breiner said. “Sun Equity Partners is an example of young blood keeping up with the trajectory of a new real estate market, and their development model realizes potential that, for a less cerebral investor, is unimaginable.
About Eastern Union Funding: Founded in 2001, Eastern Union Funding is a leading national commercial mortgage brokerage firm, employing over 100 real estate professionals who, using their extensive knowledge of the market, share lender and market data and utilize state-of-the-art proprietary technology to capitalize on deep relationships with more than 85 local and national lenders. Eastern Union’s real estate professionals bring clients the very best rates and terms the market has to offer, acting as trusted advisors who operate on the simple premise that client needs come first. Eastern Union’s arsenal of lending sources enables the company to arrange financing for complex, multi-state, multi-site portfolios, as well as loans for smaller, single-property transactions. The company consistently places an average of a quarter of a billion in new loans every month. Eastern Union, which operates nationwide, is headquartered in New York, with offices in New Jersey and Maryland. For more information, please visit: http://www.easternuc.com/.
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