SAN DIEGO, Feb. 7, 2022 – JLL Capital Markets announced today that it has arranged an $11.7 million refinancing for The Convoy, a fully leased, 51,623-square-foot neighborhood strip retail center in the San Diego community of Kearny Mesa, California.
JLL worked on behalf of the borrower, CEG Capital Partners, to place the seven-year, fixed-rate loan with a regional credit union. Proceeds will be used to refinance the existing bridge loan used to acquire the property back in 2017.
Originally constructed in 1973, the borrower renovated The Convoy after acquiring it in 2017 and executed an extensive property improvement plan. The single-story property is home to a popular national and local tenant mix that includes Bank of Hope, Hive, Convoy Strength, Ichibanya and Axe Thro, Manna Heaven BBQ, Synergy Dental Group and Da Nang Corner.
The Convoy is positioned on nearly three acres at 4428-4444 Convoy St. in one of the most notable retail corridors within Kearny Mesa, a sought-after and rapidly growing submarket in the San Diego MSA. The area is booming with a population of 324,984 within a five-mile radius, which is expected to balloon another 3.3 percent before 2026, outpacing both the projected growth of San Diego County and California. Additionally, the property’s highly accessible location is less than 10 miles from downtown San Diego and proximate to Interstate 805.
“After undergoing an extensive repositioning process, The Convoy demonstrated its durability with strong performance throughout the COVID-19 pandemic,” said Pat Geary, Managing Partner of CEG. “The JLL team did a great job of sourcing the appropriate lender and terms for our needs and provided exceptional guidance as our advisor throughout the process.”
The JLL Capital Markets Debt Advisory team representing the borrower was led by Senior Director Chris Collins and Associate Daniel Pinkus.
“Despite the challenges the retail sector faced, due to the COVID-19 pandemic, the capital markets really showed up, creating a competitive marketing process,” Collins said. “CEG performed flawlessly, and we are excited to have been their trusted advisor throughout the closing of this refinance.”
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 and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
