Opportunity in Retail Exists

PSRS Completes $15.5 Million Loan on Japanese Supermarket Proving Retail Opportunity Exists

Amidst growing concerns about the viability of retail, specifically in the big box grocery store space, Trevor Blood, vice president, PSRS, coordinated financing with one of the firm’s top correspondent life companies, funding a $15.5 million loan on a 57,000-square-foot Japanese grocer, Mitsuwa Marketplace, located in Torrance, CA.

Why Does This Retail Stand Out?

Mitsuwa Marketplace is the largest Japanese supermarket chain in the US. According to Mr. Blood, the following points were essential to the success of this financing: strength of the tenant, proximity to the tenant’s corporate headquarters, and significance of being a community anchor for the surrounding Asian population. Low vacancy for similar space in the market also made this an attractive request by the property owners. In addition, the uniqueness of the use, with various vendors operating within the marketplace alleviated concerns that would have existed with other big box retailers.

Borrower Perspective:

The borrower, an Los Angeles resident, said, “the process, facilitated by Trevor Blood and the correspondent relationship with the life company, made this the smoothest transaction throughout my 30-year plus career.” Moreover, PSRS credits the life company who accommodated the borrowers by providing limited recourse to the borrowers, on a 25-year fully amortizing loan at a best in market rate.

Final Word:

To overcome concern over at-risk grocers and retailers, lenders prefer to provide loans on similar assets which have strong inline tenants to go along with the collateral, to limit the exposure of the lender. Furthermore, a long lease is typically required with the anchor tenant, to provide additional security. Without those attributes, funding a loan like this would be very difficult. Thanks to the strength of PSRS’ relationship with the lender, the firm can overcome the hurdles.

That is the value of working with life companies and PSRS has access to the best life companies in the market.

Contact PSRS to discuss correspondent opportunities.

CONTACT PSRS
Featured Transaction
 
Mitsuwa Marketplace
Life Insurance Company
57,000 SF
$15.5M
Torrance, CA
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Why Work with PSRS
 
  • Non-recourse financing
  • Lock rate at application
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  • Minimal to no reserve structure
  • Current servicing portfolio of $5.5 Billion – Fast servicing decisions
  • Nationwide coverage in the US on all commercial and multi-family real estate
  • Loan sizes from $1 Million to $100 Million+
PSRS represents 22 life insurance companies, and also works with banks, private capital and other credit facilities seeking investment in real estate secured assets.
We maintain a loan servicing portfolio that includes these life company mortgages, and we are available to provide borrowers with local customer service over the life of the loan.
CONTACT
PSRS Los Angeles
psrs-la@psrs.com
310-471-1911
ABOUT PSRS
Founded in 1972, PSRS is one of the largest privately-held commercial mortgage banking firms in the Western United States.
 
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