CFM Properties Lands $39M for Detroit-Area Retail Center

CFM Properties has obtained a combined $38.5 million for The Gateway Center, a 272,300-square-foot regional shopping center in West Bloomfield, Mich. Citibank and Red Oak Capital Holdings provided the financing.

The larger note, originated by Citibank, is a five-year, $24 million CMBS loan, according to CommercialEdge information. The interest-only note carries a rate of 7.7 percent.

The $14.5 million bridge loan issued by Red Oak is also interest-only, with a two-year initial term. Red Oak’s Stratos Athanassiades, Thomas Gorski and Jesus Martinez handled the financing proceedings. SF Capital Group’s Matt Shane was also instrumental in the deal.

The property’s previous debt included a $42.5 million financing package originated by Seven Hills Realty Trust in 2021. Of the total, approximately $5.1 million were earmarked for tenant improvements and capital expenditures.

Rethinking Gateway Center

Completed in 1999 on a 3-acre site, The Gateway Center was 95 percent leased at the time of closing. Retailers such as Whole Foods, Kohl’s, Walgreens and Dunham’s Sports anchor the property.

The bridge loan proceeds will refinance only part of the shopping center, the 115,491-square-foot portion that includes Kohl’s, Harbor Seafood, J. Alexanders Restaurant, four other in-line stores and a currently empty lot. The remainder will be refinanced through the CMBS note.

CFM Properties plans to retain the Kohl’s pad and sell all outparcels to pay back the Red Oak loan. The ownership also intends to either redevelop Kohl’s into a luxury residential community or renew Kohl’s lease and refinance the pad long-term. 

The Gateway Center is at 7130-7440 Orchard Lake Road, near U.S. Road 10. Downtown Detroit is some 23 miles southeast.