JLL has arranged a $74.478 million refinancing package for Shops at Stonefield, a Trader Joe’s-anchored, Costco shadow-anchored retail destination in Charlottesville, Virginia. The financing recapitalizes a large-format retail property that serves as a major shopping and entertainment hub for the local community.
The brokerage acted on behalf of the borrower, O’Connor Capital Partners, to secure a three-year loan from FS Credit REIT. According to JLL, the center benefits from strong regional fundamentals, including its location roughly two miles north of the University of Virginia and exposure along a highly visible corridor in what is described as one of Virginia’s most desirable markets.
JLL’s Capital Markets Debt Advisory group led the refinancing assignment for the borrower. The team was headed by Senior Managing Director Brian Gaswirth and Senior Director Evan Parker, along with Associates Gus Caiola and Jude Carlon. Their mandate focused on sourcing debt capital to replace existing financing on the stabilized retail asset.
Shops at Stonefield totals 267,294 square feet and is reported to be 92% occupied and 98% leased. The property features a diverse mix of retail, restaurant and entertainment tenants. High-profile retailers at the center include L.L. Bean, Lululemon and Sephora, supported by a 14-screen Regal Cinema that houses the only IMAX theater in Charlottesville.
The retail center is positioned within a 43.5-acre master-planned community that integrates multiple commercial and residential uses. In addition to Shops at Stonefield, the broader development includes a 137-room hotel and a 455,000-square-foot facility fully occupied by Northrop Grumman. Three residential properties within the master plan add a built-in customer base for the retail and entertainment offerings at the center.
The combination of grocery anchoring, proximity to a major university, diversified tenancy and integration into a mixed-use environment underpins the business plan for the asset and helps support the newly arranged refinancing for O’Connor Capital Partners.
