A 156,000 sq ft grocery-anchored shopping center located along a major thoroughfare in Edison, NJ. At acquisition, the property was approximately 33% occupied, but the Borrower also had an executed anchor tenant lease with H-Mart for an additional 56,000 sq ft. The Borrower planned to re-brand the shopping center with a predominantly Asian theme and improve both the tenant mix and tenant quality.
HRC arranged $35 million in senior bridge financing and $11.2 million in joint venture equity to finance the property’s acquisition, rehabilitation, and lease-up. The senior financing featured a fixed rate initial funding and reserves for hard & soft costs, tenant improvements, leasing commissions, and interest carry. The $11.2 million equity investment came from a fund and represents 90% of the project’s required equity.