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Debt & Equity

Acadia Realty Trust and DLC Management Secure $36M Loan to Recapitalize Grocery-Anchored Shopping Center

JLL Capital Markets has closed on a $36.1 million loan facility to recapitalize and reposition The Shoppes at South Hills, a 512,218-square-foot, grocery-anchored shopping center and future self-storage facility in Poughkeepsie, New York.

JLL exclusively represented joint venture partners Acadia Realty Trust and DLC Management to secure a five-year, non-recourse, fixed-rate loan from Berkshire Bank.

The Shoppes at South Hills is currently leased to 17 retail tenants with a remaining weighted-average lease term (WALT) of 5.0 years. The tenant mix includes At Home (84,180 SF), ShopRite (76,880 SF), Ashley Furniture Home Store Outlet (55,808 SF), Hobby Lobby (49,838 SF) and Christmas Tree Shops (37,526 SF), with national tenants generating approximately 92.5% of the property’s current income.

As part of the sponsor’s multi-phased redevelopment plan, 80,275 square feet of existing space will be repositioned as a 60,000-square-foot self-storage facility with 600 units that will be third-party managed by a national operator. The JV also has an LOI with a national homebuilder to purchase 14.45 acres of excess land to build approximately 200 residential units, further complimenting the borrower’s repositioning plan.

Located at the intersection of U.S. Highway 9 and Route 9D the property is passed by approximately 54,400 daily commuters. The Shoppes at South Hills is adjacent to the Poughkeepsie Galleria, which allows visitors a cross-shopping experience between grocery, apparel and furniture retailers. It is one of only two grocery-anchored shopping centers in the area, serving an average population of 70,546 within a five-mile radius.

The JLL Capital Markets Debt Advisory team was led by Executive Managing Director Mike Tepedino and Senior Director Stephen Van Leer.

“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,” said Tepedino. “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.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos, and research resources on JLL, please visit our newsroom.

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