Mag Mile Capital closed a $12,500,000, seven-year, fixed-rate, 73 percent LTV, limited-recourse loan on behalf of Bryan Rishforth and Philadelphia-based firm, R&R Global Partners. Located in the near northwest suburb of Lincolnwood, Illinois at 6850 McCormick Boulevard, the subject property is anchored by Walmart’s new online grocery and consumer goods pick-up concept. Walmart completed an expansive buildout in June, making this location one of the first of its kind to open to the public. The remaining space is leased to a top-performing Planet Fitness gym.
“Given R&R Global Partners’ mandate for a highly competitive rate, low fees, leverage and asset flexibility during the term of the loan, we knew it would be critical to present this request to lots of lenders. Our network, combined with the strong tenancy and Bryan Rishforth’s track record of developing dynamic and value-added retail in Cook County, allowed us to get the loan closed quickly and with the desired mix of leverage, rate and prepay flexibility,” said Mag Mile Capital senior vice president, Mac Dobson, who completed the deal.
R&R Global Partners acquired the building in November of 2015, following an unsuccessful redevelopment attempt by its previous owner. The property had been vacant for more than two years after Dominick’s, a Safeway subsidiary that was once a dominant grocer in Chicagoland, exited the market in 2013. Many of the locations were acquired by other grocers like Whole Foods, but R&R Global Partners identified the property as the perfect site for a Planet Fitness, and then brought in Walmart following the rapid expansion of the Planet Fitness membership base.
“We briefly explored selling the property after signing Walmart, but we got linked up with Mac through a mutual business associate and began exploring options to refinance the asset instead,” said Rishforth. “Mac put a number of loan executions in front of us, allowed us to compare various recourse and non-recourse options, and then delivered an incredible deal with a regional bank. We look forward to a growing relationship with Mac and the Mag Mile team.”
This article was originally published on REJournals.com on October 29th.