We have always recognized that Strip Centers are the backbone of retail. From the standpoint of long-term stability and yield the neighborhood anchored strip has, over time, shown an enviable record of cash flow. They have also had growth benefiting from inflation.
An owner should recognize that an anchored strip may have a credit component. We will analyze that for you. If it is realistic to split out credits we will discuss that option with you. By doing this we may find that the loan proceeds are larger and the interest costs may be lower.
We have used CMBS Conduit loans fot the purchase and the refinance of these properties. Cash out refinance is not a problem. Analysis and proper placement of a loan is a value that we provide for our clients.
Big box and power centers are really a strip centers on steroids. Much larger in size, they may have a number of credit tenants. There are also often a number of out parcels and ground leases.
Here again it is a question of analyzing the credits, the cash flow and the stability over time. That will determine the best financing for this type of property.
Generally malls are dependent on department stores as anchors. Back in the good old days malls were terrific. Then retail changed. Some department stores merged others went out. Some malls fell on hard times. It has become a case by case situation.
Today a mall that has been able to maintain a high level of occupancy and cash flow is very financeable. Malls that have been hard hit by the changes that have taken place in retail must be looked at on an individual basis.
Credit Tenant Lease Financing loans go right to the Wall Street money market lenders. Large loans secured by stable properties with a low LTV, 60%, go to the large insurance companies. The CMBS lenders are very active in this market. Smaller loans will go to the banks. Don't forget construction loans.
