Pittsburgh Power Center Lands $40M Refi

By Adriana Pop

Pittsburgh—HFF has arranged a $39.5 million refinancing loan for Village Square, a 392,497-square-foot, fully leased retail center in the Bethel Park area of Pittsburgh.

Office Depot at Village Square in Bethel Park

The firm worked on behalf of borrower Oxford Development Co. to place the 10-year, fixed-rate loan with Goldman Sachs & Co. HFF will service the securitized loan, proceeds of which were used to primarily pay off a maturing loan.

Village Square is situated on 31.4 acres at 4000 Oxford Drive, at the intersection of Fort Couch Road and U.S. Route 19, in the heart of South Hills, one of the city’s most densely populated and affluent areas. The two-story center is approximately 10 miles from downtown Pittsburgh. The property, built in 1982 and renovated in both 1997 and 2003, is anchored by Home Depot, Kohl’s, Burlington Coat Factory, Michael’s, Office Depot and Toys”R”Us. Other tenants include Half-Price Books, Sten’s Stride Rite Shoes, Famous Footwear and Avenues. The outparcel pads at Village Square are leased to Olive Garden, TGI Friday’s, Pennzoil and PA Wine & Spirits.

Claudia Steeb, managing director, along with John Pelusi, executive managing director, led the HFF debt placement team.

Oxford has been active in the South Hills area since 1962, when the company broke ground on South Hills Village Mall. Most recently, Oxford completed the $4 million renovation of the Crowne Plaza Hotel & Suites Pittsburgh South, a 179-key property located on Fort Couch Road, near South Hills Village.

Image courtesy of Office Depot