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Tuesday, 16 May 2017

TIAA Lends $150Mln Against Raleigh, N.C., Retail Space

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Commercial Real Estate Direct Staff Report

The Circle at North Hills, a 745,958-square-foot shopping center in Raleigh, N.C., that had seen a recent decline in cash flow, has been refinanced with a $150 million mortgage provided by TIAA.

A total of 585,000 sf at the property had served as collateral for a $141.2 million loan that was securitized through JPMorgan Chase Commercial Mortgage Securities Corp., 2007-CIBC20. That loan had been placed on a servicer's watchlist as its July maturity approached. Cash flow at the collateral had declined last year to $9.7 million from $10.5 million in 2015, making a refinancing challenging.

So the property's owner, a venture of Kane Realty Corp. and JPMorgan Asset Management, put up additional collateral and was able to sew up a larger loan from TIAA.

The venture added as collateral the 80,000-sf Lassiter District, which is across the street from the Circle, along with a number of stand-alone stores and some ground-floor space at apartment properties in the 100-plus acre North Hills mixed-use development.

The Circle at North Hills is the former North Hills Mall, a one-time enclosed shopping center that Kane had acquired in 2001 and redeveloped into an open-air property. Tenants include JCPenney, with 169,524 sf through March 2018; Regal Entertainment Group, with 50,010 sf through May 2020; Gold's Gym, with 25,578 sf through December 2019, and Recreational Equipment Inc., with 25,500 sf through November 2020.

JCPenney's lease can be extended for another five years and Regal's lease can be extended for another nine years. The Circle at North Hills is shadow-anchored by a 160,000-sf Target, which owns its space.

Kane three years ago sold a 50 percent stake in the property to JPMorgan, which purchased it on behalf of its Strategic Property Fund in a deal that valued the property at $262 million.

The Lassiter District, meanwhile, is a former strip center, known as North Hills Plaza, which Kane had acquired in 1999. It's been converted into a lifestyle center occupied by tenants such as Total Wine, Starbucks, Main & Taylor and Lululemon.

Kane incorporated both properties into the larger North Hills mixed-use property, which it developed in phases. The complex, along Six Forks Road, near Interstate 440, includes four office buildings with 1.1 million sf, two hotels with 400 rooms and five apartment properties with 1,800 units.

The mall, constructed in 1967, was the first two-story mall between Washington, D.C., and Atlanta.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.


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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Raleigh
  • States: North Carolina
  • Sector: Retail
  • Subject: Mortgages/Financing (MOR)
  • Company: Athena Group
  • Valuation: Between $100 million and $150 million
  • Private: No
  • bloombergDealName: JPMCC 2007-CB20
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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