Concord Summit Capital, LLC (Concord Summit) arranged a $16 million bridge loan to refinance and expand the Bed Bath & Beyond Plaza located at 14802 South Military Trail in Delray Beach, Florida. The sponsor, Berta Management of Florida, will use the money to construct a new Starbucks store, provide for capital improvements and pay off existing debt.
Massachusetts-based Seven Hills Realty Trust provided the non-recourse loan which amounts to 70% of the property’s appraised value. Concord Summit Director Justin Neelis and Senior Analyst Daniel Rojo, both of Concord Summit’s Miami office, sourced the financing on Berta Management’s behalf.
The neighborhood shopping center sits on an 8.41-acre parcel at the intersection of S. Military Trail and Atlantic Ave. It is anchored by a newly renovated Bed Bath and Beyond and a CVS built in 2018. The Starbucks will be built as an outparcel facing Atlantic Ave. Site work is underway, and once construction is completed, the shopping center will total 86,043 square feet of leasable space.
“Retail remains a challenging asset class, but there is capital available to finance well-located properties with strong anchors, especially in South Florida given the continued rising population,” said Neelis. “The Bed Bath and Beyond Plaza is in a phenomenal location with a traffic count of over 79,000 daily trips and great tenants that have signed long-term leases. That is a trifecta”.
Neelis continued: “Seven Hills Realty Trust provided a very competitive financing solution and stayed committed throughout our process. I look forward to more deals with them in the future.”