Rolling Hills Square
KeyBank Real Estate Capital (KBREC) secured $11.4 million of financing for Portal Investment Management, a real estate investment firm based in Sherman Oaks, Calif., to acquire a retail property in Tucson, Ariz.
Built in 1979 and renovated in 2000, Rolling Hills Square is a 114,102-square-foot shopping center anchored by a Fry’s grocery store that occupied 52,068 square feet. The property is comprised of six buildings and a vacant parcel. Fry’s is an original tenant whose parent company is the Kroger Co.
The financing is comprised of an initial funding of $9.8 million and a future funding of $1.6. The future funding will be used for tenant improvement expenses, as Portal Investment Management repositions the property along with capital improvements. The loan is structured with a three-year, interest-only initial term with the option to extend for two 12-month periods that amortize on a 30-year schedule.
Charles Flanary of KBREC’s Commercial Mortgage Group structured the financing.