Refinance and Renovation Funds for an Inline Retail Center in Graham, NC
Paradigm Capital, a nation-wide, private, commercial real estate bridge lending firm, is pleased to announce that it has funded a $2,300,000.00 1st mortgage, to fund the refinancing of a 95 % occupied, 54,000 SF inline retail center in Graham, NC, anchored by Food Lion. The transaction is additionally secured by a second mortgage on a 46,000 SF retail shopping center in Laurinburg, NC. The Laurinburg shopping center is in contract to be sold to the Publix Corporation and the net proceeds from this sale shall be used to pay off or pay down Paradigm’s Loan. As part of a larger company wide initiative, Food Lion has been updating its stores across North Carolina. The Graham Store has been in the process of being updated over the past year at a cost of approx. $3.2MM and the upgrades should be finished by the end of July 2017. They are requiring our Borrower replace the roof, at their own expense, prior to executing a lease extension. A Portion of Paradigm’s loan shall be used to fund the roof replacement and also resurfacing the parking lot.
David Kushner, the President of Paradigm Credit Corporation had this to say about the Paradigm’s recent transaction, “Our Borrower’s existing financing was coming due and because of the limited term remaining on Food Lion’s lease, the lender would not extend its loan, this, along with the mandatory renovations required by Food Lion prior to extending their lease, precipitated our Borrower’s need for bridge financing. Paradigm understood the risk of lending here given the short lease term remaining but this location is Food Lion’s highest grossing store in the region with sales of over $18MM. Considering that an average Food Lion in the U.S. grosses about $9MM-$12MM, we felt comfortable that this lease would be extended after completion of the necessary renovation work. Paradigm’s mortgage represents 48.9% of the Properties’ underwritten value and we were able to close this transaction in approximately 30 business days from origination.”