ValueXpress obtained a $13.6-million first-mortgage CMBS conduit loan that was utilized to refinance existing debt secured by a one-story, 210,000-square-foot community shopping center located on I-79 near Charleston, West Virginia. The property is currently 92% occupied by 21 tenants. The property was constructed in 1989 and expanded/renovated in 1999, 2007, 2010 and 2011. It is in excellent condition.
“One of the interesting things about real estate in West Virginia is barrier to entry, and it is not due to availability of land,” commented Michael D. Sneden, Executive Vice President of ValueXpress. “It’s about mountains. There is very little level land in the desirable areas of West Virginia for real estate development. The sponsor basically blasted the mountains at a desirable I-79 intersection to create a level 30-acre site to build this center. As a result, the center has been historically well occupied.”
The loan transaction was structured as a 10-year term based on a 30-year amortization schedule. Loan-to-value was 75% and the property provides 1.30x net cash flow DSCR on actual income and expenses.