EDINA, MN—CBRE’s Minneapolis Debt & Equity Finance group has arranged $7 million in permanent mortgage financing for Jerry’s Grandview, a 101,973-square-foot grocery-anchored, mixed-use office/retail center here.
The center is near the intersection of Vernon Avenue and Highway 100 in this Twin Cities suburb. The property includes a Jerry’s Foods store, a Jerry’s Hardware store, and 31,000 square feet of multitenant office space.
CBRE Senior Vice Presidents Doug Seylar and Murray Kornberg arranged the financing on behalf of the owner, Grandview 2012 LLC, through the American United Life Insurance Co.
The borrower retired the existing debt on the property and locked in an interest rate that was lower than the coupon on the then existing debt, which significantly improved the property’s overall cash flow, according to the two men.
In addition to retiring the existing financing, a portion of the loan proceeds will be used to fund improvements to the Jerry’s Hardware store, which moved into its new space in January 2012.
Improvements to the property include parking lot, sidewalks, elevator, common areas, loading facilities, main entrance and updating the front façade.
Jerry’s Enterprises, based here, operates more than 40 retail businesses, including 36 grocery stores in three states. The company is a franchisee of Cub Foods in the Twin Cities area with 14 area stores.