Cotton Mill II Shopping Center
July 4, 2023
Cotton Mill II Power Center Near St. George Home to Kohl’s, Natural Grocers, Jo-Ann Fabrics, and Dollar Tree; Well-located Retail with Right Story Continues to Attract Lenders
Washington, UT – Gantry, the largest independent commercial mortgage banking firm in the U.S., has secured a $15.2 million permanent loan to acquire the Cotton Mill II retail power center located at 755 W Telegraph Street in Washington, Utah, a fast-growing suburb of St. George. The center covers 18.23 acres and includes a large inline retail building and two outparcel ground leases totaling 165,000 square feet, with an additional buildable pad capable of supporting a 15,000-square-foot, multi-tenant inline building. Major credit tenants include Kohls, Natural Grocers, Ross, Jo-Ann Fabrics, Dollar Tree, Red Robin, and a Cache Valley Bank branch.
Gantry’s Tony Kaufmann, Senior Director, and Erinn Cooke, Senior Associate, with the firm’s San Francisco production office secured the loan on behalf of the borrower, a private real estate entity. The 30-year loan was secured through one of Gantry’s correspondent life company lenders, and features an attractive, fixed interest rate.
According to Gantry’s Tony Kaufmann, “Retail continues to be a preferred allocation for Gantry’s correspondent life companies when performance and sponsorship can tell a positive story post COVID. Power retail centers featuring credit tenant, destination retailers performing well in far suburban and tertiary markets can secure attractive, long-term debt when paired with conservative leverage. For this acquisition, we were able to stabilize Cotton Mill II for a long-term hold via a 30-year permanent loan at an attractive, fixed rate. While still a secondary or even tertiary market, the St George MSA is one of Utah’s fastest growing regions, and Washington is fast becoming a popular suburban community in the path of local population growth.”