August 6, 2018 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $25.46 million acquisition financing of a two-property, grocery-anchored retail portfolio totaling 305,765 square feet in suburban Minneapolis.
The HFF team worked on behalf of the borrower, an affiliate of Sterling Organization, to place two separate loans for the acquisition of Village Ten Shopping Center and Shannon Square Shoppes. Morgan Stanley Bank, N.A. provided the 10-year, fixed-rate loans, which will be serviced by HFF.
The portfolio, which is situated in two affluent Minneapolis suburbs, comprises the 208,127-square-foot Village Ten Shopping Center anchored by Cub Foods and Lifetime Fitness in Coon Rapids, Minnesota, and the 97,638-square-foot Shannon Square Shoppes anchored by Cub Foods in Arden Hills, Minnesota. The portfolio was 99 percent occupied at purchase.
The HFF debt placement team included senior managing director Chris Drew; senior director Nat Scarmazzi; managing director Jules Sherwood, a licensed Minnesota real estate broker; managing director Tim Joyce and associate Matthew McCormack.
“This acquisition helped Sterling Organization further expand their grocery-anchored investment holdings within the affluent and growing Twin Cities MSA,” Scarmazzi said. “The accretive debt was a testament to the strength of the location and historical performance of each of these assets.”