Coal Mine Retail Center is a 122,446 sf grocery-anchored retail center located in Littleton, CO. The property was most recently renovated in 1988 and major tenants include King Soopers, ACE Hardware, Goodwill, and US Bank. Prompted by a recent lease extension by the grocery store tenant at a higher rental rate, the Borrower wanted to re-finance the current debt on the property to lock in a competitive interest rate for a longer term.
The prior debt on the property matured in 2023, therefore, the refinance triggered a prepayment penalty. In addition to sourcing quotes from both life insurance companies and CMBS lenders, Essex was able to strategize with the existing life insurance company lender, who recognized the benefit of the anchor tenant’s long-term renewal. Ultimately, Essex was able to negotiate the existing lender to increase the loan amount, offer a 10-year interest-only term, and soften the prepayment penalty for the Borrower. Mike Jeffries and Blaire Butler represented the Borrower, who locked an interest rate the following day and closed the $11,500,000 loan 45 days later.