Square Mile Credit Partners LP, an investment fund managed by Square Mile Capital Management, has originated a $26.8 million first mortgage loan for Penrose Plaza, a 261,000 s/f grocery-anchored retail center located in Philadelphia’s southwest submarket.
The loan is funding the recent acquisition of the center, along with planned capital expenditures and tenant improvements.
A joint venture that includes Onyx Properties, Abrams Realty & Development and Siguler Guff acquired the property, located at 2900-3000 Island Avenue, in July 2015.
It is currently 51.5 percent leased to 17 tenants, including a ShopRite supermarket with a 20-year lease extension signed at the time of property acquisition.
Square Mile managing director Michael Schonbraun commented, “This debt investment represented a compelling opportunity to invest in a retail property that is strategically located in a supply-constrained submarket of a major city.
“Penrose Plaza is being redeveloped to restore and enhance its local retail market dominance by partners who have great vision and extremely successful track records. We are very pleased to initiate a business relationship with them by adding this loan to our debt investment portfolio.”