Regency Centers Secures $197MM Debt Package for 10-Property National Retail Portfolio

Bayhill Shopping Center, Ygnacio Plaza, Aurora Marketplace, Navajo Shopping Center, Twin Oaks Shopping Center, JLL, Regency Centers, Hartford Investment Management Company
Courtesy of Regency Centers.

(EDITOR’S NOTE: According to sources familiar with the deal, there were two Bay Area assets part of the portfolio: the Bayhill Shopping Center in San Bruno, located at 851 Cherry Ave., and Ygnacio Plaza, located at 1881 Ygnacio Valley Rd. In Walnut Creek.)

Regency Centers-led partnership used the loan proceeds to refinance the properties

ORLANDO  – JLL Capital Markets announced today that it has arranged $197 million in senior debt for the refinancing of a 10-property retail portfolio totaling over one million square feet located in strategic trade areas in the Washington, D.C., Baltimore, Chicago, San Diego, Los Angeles, San Francisco and Seattle metros.

JLL worked on behalf of the borrower, an existing co-investment partnership managed by Regency Centers Corporation (NASDAQ: REG), to arrange 10 independent, uncrossed first mortgage loans; all on a 10-year, fixed-rate, interest-only basis with Hartford Investment Management Company (HIMCO).

The portfolio is approximately 97% leased overall and consists primarily of best-in-class grocery and pharmacy neighborhood centers anchored by Trader Joe’s, Giant, Safeway, Ralph’s, Albertson’s, Mariano’s, Walgreens, CVS and Rite Aid.

JLL’s Capital Markets team representing the borrower was led by Senior Director Tarik Bateh. Additional JLL Capital Markets team members included Senior Managing Directors Greg Brown, Bruce Ganong and Keith Largay, Senior Director Chris Hew and Director Drew Heitstuman.

“Despite current market volatility due to COVID-19, the capital markets remain selectively open for retail assets and this large scale offering garnered significant lender interest,” Bateh said. “Regency’s best-in-class operating team and long-term commitment to the properties created conviction around the assets’ durability. HIMCO distinguished themselves via their own long track record of retail lending and provided a seamless execution during otherwise turbulent times.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

About Regency Centers Corporation (NASDAQ: REG)

Regency Centers is the preeminent national owner, operator, and developer of shopping centers located in affluent, infill suburban trade areas. Their portfolio includes thriving properties merchandised with highly productive grocers, restaurants, service providers, and best-in-class retailers that connect to their neighborhoods, communities, and customers. Operating as a fully integrated real estate company, Regency Centers is a qualified real estate investment trust (REIT) that is self-administered, self-managed, and an S&P 500 Index member.

About HIMCO

HIMCO has been providing investment advice for over 35 years. With more than 130 investment professionals and approximately $106 billion in assets under management (as of December 31, 2020) across the fixed income, alternative and equity markets, we are able to deliver tailored strategies to insurance, sub-advisory and other institutional clients. HIMCO’s broad capability set allows it to develop strategies based on each client’s individual needs while navigating various market environments.  HIMCO offers both broad-based and sector specific investment capabilities.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of December 31, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. 

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