“Lenders today want to know what the store sales are, and that’s why Placer’s retail sales data is such a game changer. We can now give a lender accurate sales data, regardless of the tenant’s industry, and prove that a property is a good investment.”

-- Ernest DesRochers, Senior Vice President and Co-Managing Director

‍The Challenge

Northmarq client seeks $22M in financing for a 75K sqFt shopping center in Staten Island, NY

An industry-leading capital markets resource for commercial real estate investors, Northmarq Capital connects its clients with a wide range of capital sources, including a client with a grocery-anchored retail shopping center in Staten Island, NY who was in search of a lender for a $22M refinance. The catch? As with many retail deals, the owner did not have tenant sales data to help a lender get comfortable with the deal. How could Ernest DesRochers, SVP and Co-Managing Director at Northmarq, prove the strength of the center and assure the lender the deal was a worthwhile investment?

‍The Solution‍

Healthy chain rankings and retail sales data fill key information gaps for the lender

Using Placer, Northmarq showed visits were up 9.6% Yo2Y, with steady week and weekend traffic and high visit frequency, a good sign for a grocery-anchored center. Placer’s Ranking report then showed how the tenants ranked for their chains noting that the supermarket, pharmacy, and bank tenants ranked in the 82th percentile or higher nationwide, with the pharmacy and bank also above the 90th percentile for their categories.

Learn more about Ranking Overview

Finally, using the Retail Sales report, Ernest found that the supermarket anchor tenant achieved $26.7M in sales, or $703 / sq ft over the last year,  with YoY visit growth of 7.6% and Y02Y growth of 5.9%, another indicator of the grocer’s strength and likelihood to renew its lease.

Learn more about Retail Sales Metrics

While strong sales totals and sales / sqft is important, it helps to contextualize the sales totals by comparing them to the chain overall, similar to comparing the rankings by visit. Here, Placer data helped Northmarq to show that the grocery anchor consistently overperformed compared to its chain, with many months seeing sales more than 75% higher than the chain’s national average.

Learn more about Retail Sales Trend

The Outcome

SUCCESS: Northmarq proves deal strength to lender, secures $22M for client Purchase

Placer.ai visitation, rankings, and retail sales data helped Northmarq Capital successfully prove the strength of the shopping center and secure the $22M in debt refinancing for their customer.

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