Inner Circle Capital Advisors successfully arranged financing for the refinance of a 120,000-square-foot shopping center located in Decatur, GA.
The sponsorship group originally acquired the property with 100% vacancy and executed a comprehensive repositioning strategy that included an environmental remediation and significant capital improvements. Through active leasing and operational improvements, the sponsors increased occupancy to 83%, substantially enhancing the asset’s performance and marketability.
The refinance was pursued for two primary reasons. First, the existing loan carried an interest rate of 7.9%, which was above current market alternatives. Second, the previous lender required escrows for property taxes and insurance, limiting the sponsors’ cash flow flexibility.
Inner Circle Capital Advisors sourced and secured a new lending partner offering more favorable terms, including a reduced interest rate of 6.5%, the removal of tax and insurance escrows, and partial recourse structured at 50% to each of the two sponsors. The new financing provides the borrowers with improved cash flow, greater operational flexibility, and a more efficient capital structure, positioning the property for continued stabilization and long-term value creation.
Capital Advisor: Andrew Bouton
