Brazos Mall is a 682,831 square feet regional center in Lake Jackson, Texas, of which 572,619 square feet serve as collateral for the loan. The property is anchored by Dillard’s, JC Penney, Sears, Starplex Cinema, Ross Dress for Less, Palais Royal, and Powerhouse Gym. Dillard’s owns its own store.
Shawnee Mall is a 453,861 square feet regional center in Shawnee, Oklahoma, of which 332,509 square feet serve as collateral for the loan. The property is currently anchored by Dillard’s, JC Penney, Sears and Kohl’s.
Both properties are older malls in tertiary markets – the financing market for these types of malls was virtually non-existent at the time. A loan transaction which the borrower had pursued prior to Bradford Allen Capital’s financing failed as a result of the lender’s unfamiliarity with the subject markets. However, these properties are located in markets that have experienced tremendous economic growth (energy related markets).
The loan originated by Bradford Allen Capital provided 70% of the acquisition price; new equity was contributed by the borrower. The Results: The loan closed per the terms of the loan term sheet in the required time-frame. The borrower was concerned about lender closing because the previous lender it had been working with on the project failed to close (not uncommon in today’s debt market).