3650 REIT Provides $72M Retail Acquisition Loan

Cane Cos. Management purchased Creekside Town Center in Roseville, Calif. Image courtesy of CommercialEdge

3650 REIT, of Miami, has originated a $71.5 million loan for the acquisition by Cane Cos. Management of Creekside Town Center, a 10-building retail power center in Roseville, Calif., in metro Sacramento, Calif. AEW Capital Management was the property’s seller, according to CommercialEdge data.

The center is at 1180-1256 Galleria Blvd., at Galleria Boulevard and Highway 65, and is 95.6 percent occupied. Creekside Town Center was completed in 2001, and initial tenants included Best Buy, Barnes & Noble, Old Navy, Michaels, Marshalls and Nordstrom Rack.

Currently, the 38.8-acre property has 30 retail tenants, including additional anchors Burlington and Bob’s Discount Furniture. 3650 noted that 20 of Creekside’s current tenants have occupied the property for more than 20 years.

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Creekside Town Center is sited within a regional shopping node, directly across the street from the main entrance to the Westfield Galleria at Roseville, one of the Sacramento region’s most prominent malls.

The 10-year loan was originated from 3650’s Stable Cash Flow lending platform.

3650, based in San Jose, Calif., stated that Cane Cos. Management specializes in long-term investments, “with many of its portfolio assets owned for 40-plus years.” Cane Cos. Management could not be reached for comment.

The loan was arranged by Palmer Capital Inc.

Big-box problems

Last November, Gantry arranged the $23 million refinancing of Vacaville Commons, a 400,000-square-foot retail power center in Vacaville., Calif., in Solano County, for sponsor The Rodde Co. The center is fully occupied and anchored by Target and Burlington.

The Sacramento metro retail space market is afflicted by an overall vacancy that has risen by 70 basis points year-over-year, putting the region’s vacancy above the other seven major California markets, according to a second-quarter report from Marcus & Millichap.

Worse, from the standpoint of power centers, the report notes, “Big-box moveouts are plaguing fundamentals, with sizable plots of space saturating the market. Bed Bath & Beyond closed several local sites recently, including spots in Elk Grove, Folsom and Natomas.” In addition, troubled discount retailer Tuesday Morning has shuttered three Sacramento-area stores in consequence of its latest bankruptcy.

Marcus & Millichap commented, “Larger plots may stay on the market for longer, although experiential and discount retailers have been absorbing some of these sites.”