Baltimore-Area Shopping Center Lands $22M

United Hampshire U.S. REIT has obtained $22 million for the refinancing of Arundel Plaza, a 282,039-square-foot shopping center in Glen Burnie, Md. JLL secured the 5-year, fixed-rate loan through a correspondent life company lender.

The property had become subject to a $21.5 million loan from State Farm in 2018, according to CommercialEdge information. The note had a maturity date set in 2028.

Built in 1967, Arundel Plaza underwent a cosmetic renovation in 2017. Anchored by Lowe’s and Giant Food, the community shopping center has a diverse mix of national and regional retailers such as Jersey Mike’s Subs, FedEx, Hook and Reel, Panda Express and Chipotle.

Arundel Plaza was 100 percent leased to 15 tenants at the time of its refinancing. The property has an average tenancy of 8 years with a weighted average lease expiry of 7.8 years, according to JLL.

JLL Senior Managing Directors Michael Klein and Jon Mikula, Senior Director Evan Parker and Analyst John Cumming led the Debt Advisory Team that worked on behalf of the borrower.

A well-positioned shopping center near Baltimore

Located at 6620 Governor Ritchie Highway, the retail power center is in Baltimore’s Route 2 Corridor submarket, with downtown Baltimore some 8 miles away. The shopping center serves approximately 183,000 individuals within a 5-mile radius and has had some 2.2 million visitors over the past 12 months.

The Baltimore retail market is expected to add 410,000 square feet to supply in 2024, according to Institutional Property Advisors research. The vacancy rate is slated to reach 6.2 percent at the end of this year, only 20 basis points above the metro’s trailing 5-year average.