Central Valley Plaza

Transaction description

Michael Thorp, Principal at PSRS – Newport Beach, CA, has arranged $14.5M in permanent debt for Central Valley Plaza, located in Modesto, CA. The asset is anchored by Walmart and Kohl’s, along with a large cast of other national and regional tenants. Located just off the 99 in the heart of Modesto’s retail corridor, the center enjoys easy ingress and egress, with excellent visibility from the freeway. Half of the asset sits on an unsubordinated ground lease, with the other half sitting on fee simple dirt, making this deal more challenging than most. The 10-year loan was placed with a life insurance company for whom PSRS is a correspondent. Michael Thorp stated, “This is a phenomenal asset, which is owned by a phenomenal real estate development company. Coupled with the location, the tenant lineup is one any lender would be happy to lend on – the thing that made this transaction a bit more difficult was that half of the asset sits on an unsubordinated ground lease. Given that fact, we had to select one of the best-unsubordinated ground lease life company lenders in our company’s correspondent system. At the end of the day, both borrower and lender wound up with a great deal.”