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Natixis Provides $54.5 Million Financing for Redevelopment of Philadelphia Power Center
Natixis originated a $54.5 million floating-rate financing for New York City-based Sun Equity Partners to redevelop the former Cheltenham Square Mall. The redevelopment will rebrand the property as Greenleaf at Cheltenham, an anchored power center containing 429,617 square feet. Currently 60% leased and pre-leased, Greenleaf at Cheltenham boasts a strong roster of national tenants including Home Depot, Marshalls, LA Fitness, TD Bank, Wells Fargo, T-Mobile, Chick-Fil-A, Wendy’s and others. The property is shadow-anchored by Target, Shop Rite and Burlington Coat Factory.
The financing consists of a $42 million senior loan and $12.5 million mezzanine loan. Initial loan proceeds of $16.9 million were used to retire the existing property financing and an additional $40.1 million is earmarked for the redevelopment and future leasing at the property.
The property is located in Cheltenham Township, approximately eight miles north of the Philadelphia Central Business District (CBD), at a busy intersection where combined traffic counts exceed 72,800 vehicles per day.
The financing was arranged by Eli Breiner and Jerry Boxer from ECB Capital Group in Lakewood, NJ.
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About Natixis
Natixis is a French multinational financial services firm specialized in asset & wealth management, corporate & investment banking, insurance and payments. A subsidiary of Groupe BPCE, the second-largest banking group in France through its two retail banking networks, Banque Populaire and Caisse d’Epargne, Natixis counts nearly 16,000 employees across 38 countries. Its clients include corporations, financial institutions, sovereign and supranational organizations, as well as the customers of Groupe BPCE’s networks. Listed on the Paris stock exchange, Natixis has a solid financial base with a CET1 capital under Basel 3(1) of €11.1 billion, a Basel 3 CET1 Ratio(1) of 11.5% and quality long-term ratings (Standard & Poor’s: A+ / Moody’s: A1 / Fitch Ratings: A+).
(1) Based on CRR-CRD4 rules as reported on June 26, 2013, including the Danish compromise - without phase-in. See note on methodology in the 2Q19 earnings material.
Figures as at 30 June 2019