Aries Conlon Capital Delivers CMBS Permanent Loan for Atlanta Area Ivy Walk Shoppes RetailMay 9, 2017
Conlon Capital, formed by the merger of Aries Capital and Conlon & Co’s commercial mortgage and capital markets divisions, has arranged an $11.85 million, non-recourse CMBS permanent loan for the refinance of the Ivy Walk Shoppes. The 42,499 square foot retail property is located within a Class A, mixed-use development close to Atlanta’s SunTrust Park, the new home of the Atlanta Braves. Structured by Conlon Capital CEO and Principal Rushi Shah, the loan was completed at 75% loan-to-value and is interest-only for 18 months.
With a maturity date just months away, borrower Atlanta-based MRE-Ivy, LLC contacted Conlon after a quote for a loan through a national bank came up short on proceeds.
“This deal required a lot of creativity,” said Shah. “We successfully structured around the pain points and maximized the borrower’s proceeds by leveraging the property’s strong market, recession-proof tenant profile and stellar sponsorship; as well as accelerating the Tenant Improvement and Leasing Commission Reserves. Our solution made the lender comfortable with the higher LTV, allowed the borrower to avoid an ongoing forced cash management sweep, and ensured the existing loan was paid off on-time. Not only did the borrower receive more than $1,000,000 over the previous bank’s quote for 10-year non-recourse money, he will also benefit from interest only for the first 18 months.”
Ivy Walk Shoppes is strategically located within the Smyrna Vinings development at 1675 Cumberland Parkway in Smyrna, Georgia. The property offers community residents walking-distance access to popular restaurants, shopping and services.
“We were extremely pleased with Rushi and his team’s performance,” said borrower’s representative Sam Patel, Chief Financial Officer and Partner with MRE Properties & Investments. “They successfully worked through issues that our first lender failed to resolve, and delivered the extra proceeds we needed on time. When we require financing in the future, we will look to Rushi right from the start.”