REAL ESTATE NEWS

Bridge33 Capital has landed a $460 million commercial mortgage-backed securities loan to refinance a retail portfolio, which includes a mix of Sunbelt and Midwest assets.

The first lien loan was originated by Wells Fargo and comes with a floating interest-only rate, according to a report from the Commercial Observer, citing data from KBRA. The term is for two years, with three one-year extension options.

In total, the portfolio covers 12 properties across nine states, including Georgia, Maryland, Nevada, Illinois, Colorado, South Carolina, Michigan, Indiana and Texas.

The assets are 91.4 percent occupied by 260 tenants, including Dick’s Sporting Goods and TJX Companies. Both those retailers account for over five percent of the base rents across the 4.1 million square foot portfolio, according to CO. Some grocery chains anchor some of the properties as well.

The names of the individual assets were unclear.

This year, Bridge33 has been busy playing offense in the retail sector. The company has announced four acquisitions, including a 374,753 square foot property in Columbia, South Carolina; a 448,000 square foot open-air center in Grand Rapids; a 175,000 square foot asset in Loganville, Georgia; and a 438,401 square foot shopping center in Rockford, Illinois. According to Bridge33, the firm has purchased 51 commercial properties since its founding in 2012.

As tariffs imposed by the Trump administration create future uncertainty, retail spending is holding strong for now. In July, sales increased by 4.3 percent year-over-year, which was driven by the Fourth of July, back-to-school shopping and Prime Day deals, a Colliers analysis shows. However, the CRE firm did warn that consumers are "bracing for future shocks," indicating there could be some pain on the way for retail.

Source: GlobeSt/ALM