Eyzenberg & Company has replaced a $22.6 million construction loan on a Myrtle Beach live entertainment, restaurant and retail complex with a $26 million first mortgage bridge loan.
The New York City-based commercial real estate banking firm was retained last year by Land South of MB, LLC, as its exclusive financial advisor for the development of THEBlvd, a 42,000 s/f complex unique to the vacation town’s boardwalk at 1410 North Ocean Boulevard.
The developer has since completed construction on THEBlvd and leased 70 percent of the space to tenants that include Nashville-born music and food chain, Tin Roof, which opened to brisk business this summer.
“Myrtle Beach, South Carolina is one of the nation’s most popular family and vacation destinations, attracting roughly 18 million visitors annually,” said David Eyzenberg, president of Eyzenberg & Company.
“The prime location of this multi-story entertainment complex, with heavy foot traffic from the beach, the boardwalk and Ocean Boulevard, has resulted in vibrant pre-leasing and we anticipate the remainder of the space will soon be occupied by concepts well suited to the landmark venue.”
Eyzenberg led a team that included managing director Jeff Conti and analyst Anastasia Vladislavova to replace Land South’s construction loan with an approximately $26 million first mortgage bridge loan with
Rialto Capital Management. According to Eyzenberg, Rialto was able to meet the borrower’s needs by structuring the loan based on an increase in future cash flow from 218 for-pay parking spaces attached to the development.
“That allowed our client to secure optimal financing contingent not only on the success of his new development, but on the future income from parking that will be optimized once the entire project is operational,” added Eyzenberg.
Land South principal Patrick T. Marino said the financing comes as the company evaluates prospective tenants lining up to lease the remainder of the space. He added, “David and his team’s vast experience in the commercial finance sector has been key to the success of our project, and we can’t thank them enough for their speed in execution and getting us to the home stretch.”
Tin Roof currently anchors the partially open-air complex with a multi-level dining and live music venue across 10,000 s/f. The flagship space is the company’s 15th U.S. location. Other tenants include all-natural hamburger joint Burger Fi, one of the fastest-growing fast-food chains in the country, Starbucks, and a boutique beach store selling apparel, books, jewelry and souvenirs.
According to Marino, “It is important for us to round out the tenancy with the right concepts that will complement all of the exciting new developments going on along the boardwalk and benefit from one another’s business. We hope to announce those new tenants soon.”
The property is at the northern end of the boardwalk near the popular SkyWheel in an area the local city council has been working to revive with a series of modern new developments. Plans have already been filed for a new mixed-used apartment and retail development known as Gateway Galleria that would provide rare housing options for local residents and workers in the new downtown oceanfront district.