Natixis Provides $62M Refinance for Philadelphia Retail Asset

The lender also provided a redevelopment loan for the property in 2017

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Sun Equity Partners has secured a $62 million refinance for the recently redeveloped Cheltenham Square Mall in Philadelphia, Commercial Observer has learned.

Natixis originated the 12-month floating-rate non-recourse loan, which includes two 12-month extension options. The financing will be used to retire $54.5 million in construction debt on the property, also provided by Natixis in 2017.

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ECB Capital Group’s Eli Breiner and Jerry Boxer negotiated the refinance in addition to the construction debt.

Sun Equity acquired the 1950s-era mall—located at 2385 West Cheltenham Avenue, approximately eight miles north of Philadelphia’s central business district—in 2015 from Thor Equities, paying $28.6 million. The 426,000-square-foot asset has since undergone a major face-lift and been rebranded as Greenleaf at Cheltenham.

The property comprises five out parcels plus a retail center. It is currently 70 percent leased to a variety of tenants, including Home Depot, Marshalls, L.A. Fitness, TD Bank, Wells Fargo, T-Mobile, Chick-Fil-A and Wendy’s. It is shadow-anchored by Target, ShopRite and Burlington Coat Factory.

Sun Equity Partners is a New York-based developer which specializes in the acquisition, redevelopment and management of retail, office and residential properties.

Representatives for Sun Equity and Natixis could not immediately be reached for comment.