SHOPPING CENTER LOANS

Integra Real Estate Capital maintains a strong national presence in arranging creative and competitive shopping center loans. We offer our clients comprehensive financing solutions for acquisitions, refinance and redevelopment of anchored and non-anchored retail centers. Our expertise and unique access to commercial real estate lenders, allow us to facilitate favorable fixed and floating rate loans with flexible terms and structures. We arrange financing for the full spectrum of retail properties, including:

• Neighborhood, Community and Regional Centers
• Strip Centers
• Grocery-Anchored Centers
• Big-Box Shopping Centers
• Regional Malls and Lifestyle Centers
• Power Centers and Theme/Festival Centers

We offer our clients guidance and strong relationships with all major capital providers. This lender list is comprised of domestic and foreign banks, insurance companies, Wall St. conduits (CMBS), REIT’s, pension/hedge funds and private lenders. Over the past 15 years years, we have developed a network of senior-level relationships that extend throughout the national shopping center finance community. Our daily interaction with lenders allows us to closely track lender appetite and capital allocations for retail and mixed-use properties for each lending institution.

Services we provide to our clients:

•   Acquisition Financing
•   Refinance
•   Shopping Center Construction Loans
•   Bridge and Redevelopment

CONVENTIONAL LOANS:

Integra’s long-standing lender relationships provide non-recourse financing for the acquisition, refinance and redevelopment of retail properties. We facilitate customized loan structures with low interest rates, longer amortization periods and prepayment flexibility. These financing options are designed for cash-flowing and stabilized retail properties in primary, secondary and tertiary markets.

Our capital sources for conventional shopping center financing include domestic and foreign banks, Wall St. conduits (CMBS), REIT’s, life and insurance companies. These loans feature fixed-rate 5,7 and 10-year term loans and are accompanied by 25 or 30-year amortization schedule. We are also adept in securing Interest-Only loans. The maximum achievable Loan-to-Value (LTV) is generally 75%, offered for, both, acquisitions and refinance. Higher leverage can be obtained by combining mezzanine financing with the senior portion of the debt. Integra’s strength in arranging competitive debt for anchored and non-anchored shopping center owners has provided our clients the freedom of managing and growing their commercial real estate portfolios.

BRIDGE FINANCING:

Integra originates short to medium term non-recourse bridge loans for the acquisition and recapitalization of existing shopping centers. These loans are ideal for transitional, non-stabilized assets with a value-add component, or segments where a quick closing with certainty of execution is needed. Bridge loan platforms are available for anchored and non-anchored shopping center owners who are looking for favorable loan terms while undergoing a transition. This includes renovation (CapEx), recapitalization and the ramping up of the occupancy levels by revitalizing leasing campaign efforts. Our primary focus is arranging non-recourse debt that also offers borrowers a flexible tenant improvement and leasing commission (TI/LC) structure whereby the lender funds nearly all of the TI/LC costs when new leases are signed.

Integra’s experienced loan officers are committed to guiding you through every phase of the bridge loan process. These interim loans carry either a fixed or variable-rate structure and are generally priced over a LIBOR index. Terms range between 24-36 months with options to extend the loan beyond initial maturity date. Virtually all of the bridge loans arranged by Integra carry interest-only payments and are based on non-recourse basis.

CONSTRUCTION LOANS:

When it comes to arranging competitive shopping center construction loans, we utilize our trusted network of construction lenders that provide speed, execution and certainty of closing. Our long-standing relationship lender list is comprised of domestic and foreign banks, insurance companies, as well as debt funds that have the ability to offer non-recourse construction loans for experienced developers with a good track record. Having the right relationship in this arena is critical in getting your shopping center project off the ground in a timely manner and properly funded. Aside from the retail tenant roster and location of the project, sponsorship remains the single most important characteristic in construction financing.

By engaging Integra for your next shopping center development project, you will gain access to relationships that we have fostered through the years. Our experts will swiftly underwrite the economics of the construction budget and negotiate aggressively on your behalf to achieve a well-structured loan that is customized to your financing needs.

MEZZANINE FINANCING:

Integra Real Estate Capital arranges mezzanine financing for shopping center properties located in primary and secondary markets that feature strong demographics and a diversified retail tenant roster. These loans allow sponsors to go higher in the capital stack (LTV) and are also considered as subordinate financing to the senior loan. Mezzanine loans are generally ideal for opportunistic purchases to minimize the direct equity contribution that the sponsors would otherwise have to make. These transactions include neighborhood and community shopping centers, malls, outlets, grocery-anchored centers and big box power centers. It is typical for a mezzanine loan to be co-terminus with the senior debt. Pricing of these financing vehicles varies and is based on the risk associated with the transaction. You can rely on our experienced team to navigate you through the mezzanine financing process and provide you with a customized solution for your next project.

DISCOUNTED PAY-OFF (DPO) FINANCING:

It is not uncommon for commercial real estate lenders to offer borrowers an opportunity to pay the lender off at a discount. This practice allows lenders to raise capital to reposition their balance sheet and also offset any regulatory pressure that may exist. It may also reduce exposure in certain real estate markets or help eliminate risk related to underwater real estate assets.

This mechanism is called Discounted Pay-Off.

As a leading commercial mortgage brokerage and advisory firm, Integra offers clients a network of lenders who can provide up to 90% financing of the agreed upon pay-off amount. These arrangements are generally offered to borrowers who can close on the new loan quickly. We understand that it can be challenging to find a new lender to provide the necessary capital to pay off a legacy lender, both because the discounted loan payoff opportunity is likely only available for a short period of time, and also because there is generally institutional reluctance among banks and conventional lenders to help fix what is viewed as a competitor’s problem.

Integra’s valuable lender relationships allow investors to close on new a loan with attractive terms and conditions while meeting the investors desired objectives. The discounted pay-off of the old loan simultaneously reduces the debt burden and lowers the monthly payment, generating additional cash flow to borrowers who can reinvest in the growth and expansion of their real estate portfolios.

LAND LOANS:

Integra provides clients with entitled-land financing products directed to the acquisition and development of future commercial real estate retail projects. Our mortgage consultants are keenly aware of the challenges in securing competitive land loans and work diligently in navigating clients in obtaining the right land loan. We work with a broad array of regional and specialized lenders focused on this unique asset type to achieve the developers desired objective.

Securing the appropriate land loan is an essential step to ground-up development and we will continue to compete in this space to give our clients access to our capital sources.