Marcone of Marcone Capital, Inc. arranges $19 million financing for Northstar Properties

Mike Marcone, Marcone Capital

Southington, CT Mike Marcone of Marcone Capital, Inc. has arranged two separate loans for two properties owned by an affiliate of Northstar Properties. The first loan for $6.4 million is secured by a site consisting of a 137,933 s/f building that is ground leased on a long term basis to Lowe’s. A second loan of $12.6 million was secured for the construction of a to be built 62,580 s/f retail center known as Southington Village Shops, which will be anchored by Homegoods and Michael’s Stores on long term leases.

The properties are part of an overall 97 acre site owned by the borrower. The borrower has already previously built two buildings on site dating back to 2008. The borrower built the Lowe’s building as well as a free standing Target, which was sold by the borrower to Target who owns the property to this day.

Southington Village Shops is currently in development and is expected to be completed by the spring of 2017. The property will consist of a single story, 62,580 s/f retail strip center. There is a main building comprising 49,281 s/f which is already primarily leased to Homegoods and Michael’s Stores. There is 10,000 s/f of satellite space of which 3,200 s/f has already been pre-leased to a well-known international pet food retailer. The borrower is in active negotiations with a number of tenants including several national retailers for the balance of the inline space.

Southington Village Shops - Southington, CT

In addition to the inline space, there are three pad sites that can accommodate free standing building sizes ranging between 2,500 s/f to 6,600 s/f. One of the pad sites has already been pre-leased to a well-known regional restaurant chain.

The site has visibility and is located  off of Exit 31 off of I-84.

Interstate 84 is one of the two interstate highways that were designed to connect New York City and Boston. The immediate area is comprised of a number of commercial developments including three office buildings totaling approximately 350,000 s.f. located next to the subject property as well as ESPN’s headquarters located only a few miles to the north. The town of Southington is a strong middle class community with a substantial population base and stronger than average income levels.

The property is managed by Northstar Centers, which manages a very high quality and well leased portfolio of primarily well anchored retail centers and apartment properties throughout the Northeast.

The financing was provided by two separate Connecticut based banks.

Marcone said, “Given the site already includes a Target and Lowe’s, the construction of Southington Village Shops will create a significant concentration of prime retail tenants and a true destination location for potential shoppers.”

Marcone Capital, Inc. is a mortgage banking and real estate consulting firm based in Quincy, Massachusetts.