South Crater Square

Eastern Union Secures $8.2 Million Acquisition Financing for Two Retail Centers in Petersburg, Virginia

by Julia Sanders

Petersburg, Va. — Eastern Union has secured an $8.2 million loan for the acquisition of South Crater Square and Pinehill Plaza, two single-story retail centers in Petersburg. Marc Tropp of Eastern Union arranged financing for the acquisition, which had a sales price of $10.3 million in total, on behalf of the buyer, Pikesville, Maryland-based America’s Realty. The retail centers, which total 192,510 square feet, are situated opposite from each other along South Crater Road. South Crater Square is a 107,028-square-foot center that was 83 percent leased at the time of sale to retailers such as Dollar Tree, Hibbett Sports, GameStop and Sun Nails. Pinehill Plaza is an 85,482-square-foot center, which was 29 percent occupied at the time of sale by tenants such as Crater Vision Center, Salon 22, Community Cardiology and Clay Home Medical. The acquisition component of the loan, which equals about $7.7 million, represents a 75-percent loan-to-value ratio. The undisclosed bank provided an additional $500,000 toward tenant improvements and leasing commissions, but this part of the loan was held back for future use once the properties are stabilized. The interest rate on the full-recourse loan equaled 3.6 percent over a five-year term, with 12 months of interest-only payments.

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