National Asset Services Delivers Lending Source for Refinancing Retail Center Shopping Center
NAS has successfully delivered a lending source for refinancing, River Place, a 155,093 square-foot, open-air shopping center in Sevierville, Tennessee.
With a reputation for maximizing loan maturity options for commercial real estate investors, NAS executives led a group of 22 tenant-in-common (TIC) investors through an ownership restructuring process, which consolidated TIC co-ownerships into one legal entity. Restructuring of the property’s ownership not only met financing requirements, but it ensured investors’ original 1031 Exchange tax advantages remained intact after close of the refinancing.
NAS assumed asset management responsibility of River Place in 2016. Company executives spearheaded aggressive efforts to maintain the center’s market value by maintaining a high occupancy level of over 95% with strong sales performance, despite a national downward trend for retail property growth.
Two new tenants including Benchmark Physical Therapy, a regional outpatient physical rehabilitation provider, joined the center’s already strong mix of destination retail stores. The center’s lineup of national and regional tenants include Belk, TJ Maxx, Dollar Tree, Dollar General, Maurices, Petsense, GameStop and ORNL Federal Credit Union.
The property’s occupancy, along with NAS’ strong reputation for closing, were key factors in securing a capital source for refinancing the asset.
NAS worked with Mario Cerasuolo, Principal, Lighthouse Advisory Services, to secure long term financing for River Place. Based in New York City, Lighthouse Advisory Services is a commercial real estate investment, valuation and consulting firm providing a range of services to financial institutions, commercial real estate investors and borrowers.
“Our ability to sustain high tenant occupancy, while leveraging our strong industry relationships, made the possibility of refinancing retail in a challenging debt market for retail property a reality,” commented Karen E. Kennedy, President and Founder of National Asset Services. “The option to refinance, while still retaining the original 1031 exchange tax advantages for our clients, was the very best possible outcome for our clients facing loan maturity at River Place.”
NAS will continue to provide asset management services for the shopping center’s ownership.
Built in 1983 and renovated between 2004 and 2007, River Place is located in Sevierville, Tennessee, approximately 25 miles southeast of Knoxville on U.S. Highway 441. The shopping center is part of a major commercial corridor that is a gateway to Great Smoky Mountains National Park and nearby Dollywood Amusement Park, two very popular tourist destinations in the Southeastern United States.