New York, NY – August 17, 2011 – (RealEstateRama) — Faris Lee Investments, the nation’s largest retail-specialized investment sales and advisory firm, along with Faris Lee Capital, has completed the $18 million recapitalization of a 200,000-square-foot retail center in Normal, IL on behalf of the owner, The Dial Companies, a large Midwest developer. Built in 2007, the center’s anchor tenants include Schnucks Grocery and a 14-screen Starplex Theater. The center is currently 70 percent occupied and has 12 outparcels available for future sale, lease or development.
The recapitalization of the center created an opportunity for Faris Lee Investments to represent Thompson National Properties in a joint venture with The Dial Companies to acquire the note on the property. Faris Lee Capital advised The Dial Companies and negotiated the discounted loan pay-off, procured the new debt and structured the joint venture. Rich Berlinghof, managing partner, Faris Lee Capital and Rich Walter, president of Faris Lee Investments, successfully directed all aspects of this complicated transaction. Thompson National Properties acquired the developed 200,000-square-foot portion of the center with the joint venture established as owner of the 12 unfinished outparcels.
“This transaction was highly structured and involved a discounted loan payoff combined with new first mortgage debt and an infusion of equity from Thompson National Properties, a new equity partner for the project,” said Berlinghof. “The recapitalization allowed the developer to achieve its goal of extinguishing the recourse associated with the original loan while maintaining leasing of the project and a back-end participation. Additionally, the property provides substantial upside to both the new equity partner and the developer.”
Faris Lee Capital currently has more than $200 million in recapitalization projects underway, with $400 million anticipated to complete by year end.
“This transaction underscores how complex the real estate investment market has become and the depth of financial and property level expertise that is demanded. It’s also why we continue to build upon our firm’s disciplined and creative transactional expertise and sophisticated financial experience,” said Rick Chichester, chief operating officer, Faris Lee Investments.
Faris Lee Capital provides advisory services including recapitalization, loan restructuring and discounted loan payoffs; mortgage banking including senior first mortgage debt, mezzanine debt and bridge loans; and third party capital including equity, preferred equity and rescue equity. Additionally, Faris Lee Capital arranges debt and equity for all property types nationwide including retail, office, industrial, multifamily, self storage, and construction projects, working with clients large, overleveraged portfolios, as well as single property and construction financing projects.
About Faris Lee Investments
Faris Lee Investments is a leading national real estate investment advisory firm, comprised of three (3) integrated business platforms; Faris Lee Investment Banking, Faris Lee Capital and Faris Lee Advisors. The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, the Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee’s senior experts are skilled in disposition and acquisition strategies, 1031 exchanges, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, please visit www.farislee.com.
