Berkshire Bank Lends $36M in Shopping Center Recap


A joint venture partnership between Acadia Realty Trust and DLC Management has sealed a $36 million debt package to recapitalize a grocery-anchored shopping center in New York’s Hudson Valley into a mixed-use development with self-storage, Commercial Observer can first report.

Berkshire Bank provided the five-year, nonrecourse, fixed-rate bridge loan on the sponsorship’s The Shoppes at South Hills asset in Poughkeepsie, N.Y. 

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JLL arranged the transaction led by its capital markets debt advisory team of Mike Tepedino and Stephen Van Leer.

Arcadia and DLC plan a multi-phased redevelopment plan for the property that includes repositioning 80,275 square feet of existing space into a 60,000-square-foot self-storage facility with 600 units. The JV also has a letter of agreement in place with a national homebuilder to purchase 14.45 acres of excess land next to the shopping center for the development of 200 residential units, according to JLL. 

“As lenders increasingly look to diversify their real estate portfolios outside industrial and multi-housing, The Shoppes at South Hills is a highly attractive investment,” Tepedino said in a statement. “Both the property’s prime location in the economic center of Dutchess County and the institutional sponsorship’s ambitious value-add strategy fulfilled all prerequisites for the lender, who delivered an extremely competitive financing package that meets all the borrower requirements.”

Located at 838 South Road at the intersection of U.S. Highway 9 and Route 9D, The Shoppes at South Hills is currently leased to 17 retail tenants with a remaining weighted-average lease term of five years. Tenants include At Home (81,180 square feet ), ShopRite (76,880 square feet), Ashley Furniture Home Store Outlet (55,808 square feet), Hobby Lobby (49,838 square feet) and Christmas Tree Shops (37,526 square feet).

“Berkshire Bank understands the need for larger retail centers to adapt and be repositioned for today’s consumer demands and market dynamics,” James J. Morris IV, managing director of commercial real estate for New York State at Berkshire, said in a statement. “When a project has a strong sponsor, tenancy, and location, we’re committed to leveraging our expertise to work side by side with clients to provide capital to support these important projects which help create jobs and keep our communities vibrant.”

Officials at Acadia Realty Trust and DLC Management did not immediately return requests for comment.

Andrew Coen can be reached at