C&W secures $72.5M loan to transform former mall in Roxbury Township

Redevelopment of The Shops at Ledgewood Commons in Roxbury Township is set to move forward.

Cushman & Wakefield announced on Monday its Equity, Debt & Structured Finance (EDSF) team arranged a $72.5 million construction loan with Santander Bank on behalf of the retail property’s ownership, affiliates of Advance Realty Investors.

“While financing retail centers can be challenging in the current climate, quality assets and experienced sponsors still garner strong demand from a subset of lenders, which, given our strong lender relationships and deal flow volume, we were able to tap into,” said EDSF member John Alascio, who headed the assignment with Sridhar Vankayala, TJ Sullivan and Zachary Kraft. “During the marketing process, we secured competitive interest from a number of banks and debt funds and ultimately selected Santander based on its clear understanding of the redevelopment and ability to provide the attractive terms and flexibility necessary to complete the project.”

Located in the heart of Morris County, Ledgewood Commons sits directly on Route 10, a notable trade corridor one quarter mile from Route 46 and two miles from Interstate 80.

“The ownership has already added significant value to Ledgewood Commons via strong pre-leasing and re-commitment from existing tenants, which speaks volumes to the strength of the center,” Vankayala said. “Coupled with robust market and consumer demographics, this gave potential lenders comfort and enabled them to appreciate the center’s potential to transform into a vibrant retail power center anchored by credit tenants. As retail trends continue to move away from traditional malls, Ledgewood Commons is positioned to thrive in the modern retail environment as a premier open-air retail destination.”