Centerline Capital Group has said that it just closed its first non-multifamily financing.
The $2.7 million CMBS loan was used to purchase a 14,564 square foot single-tenant retail building located at 1501 N. Main Street in Findlay, Ohio.
The property is 100% occupied by a Rite Aid drugstore that includes a drive-thru pharmacy, one-hour photo processing, a food mart and a GNC Live Well store. Rite Aid is the third largest drug store chain in the U.S. with 4,667 stores and $26.1 billion in sales revenue as of fiscal year 2012. The borrower is a newly-formed, single-purpose entity.
The property is leased to Rite Aid through August 2027, which is nearly five years after the end of the loan term. The long-term lease also includes four, five-year renewal options at the end of the initial lease term, and includes a corporate guarantee by Rite Aid Corporation.
"Single-tenant Rite Aid's are tricky transactions in this credit environment," said Peter Clasquin, senior vice president at Centerline Capital Group. "This particular deal met all of our criteria: a strong buyer with a large down-payment, a long-term lease, the new building format, and proven operations at this location. We learned in the 1990's not to bet on certain tenants' credit, but a properly-structured loan on fungible real estate is the whole point of CMBS."