#United States #Real Estate #FNRP #Brandywine Crossing #Brandywine

Successful Refinance at Brandywine Crossing

In a significant move, First National Realty Partners (FNRP) has finalized a strategic refinancing of Brandywine Crossing, a grocery-anchored retail center located in the Washington, D.C. metropolitan area. This refinancing follows a period of strong leasing activity, strengthening the property's performance under FNRP's ownership.

Since acquiring Brandywine Crossing in March 2022, FNRP has successfully increased occupancy rates from 89% to 95%. This remarkable achievement was marked by the execution of 12 new leases and six renewals with a diversified lineup of tenants, which includes well-known brands such as Marshalls, Visionworks, and Salon Lofts. These significant leasing efforts have culminated in an enhanced rent roll and elevated tenant stability, placing the property in an excellent position for sustained success.

One of the standout accomplishments during this period was FNRP's quick action to fill a sizable 25,310-square-foot vacancy left by JOANN Fabric and Crafts, who exited due to bankruptcy. FNRP swiftly secured a lease with Burlington shortly after JOANN announced its decision not to renew, showcasing the firm's agility in responding to market conditions and its strong relationships with tenants.

Sam Collier, the Chief Revenue Officer at FNRP, commented, "Our team's work at Brandywine Crossing embodies our approach to leasing across our portfolio. We excel in retaining key anchors, promptly adapting to changes, and filling vacancies, which reflects our platform's strength and emphasis on execution. This competency allows us to capitalize on opportunities that enhance each asset's long-term success."

The decision to refinance was deemed prudent in the current economic landscape, aligning with the original business strategy while preserving future growth potential for investors. This action is representative of FNRP’s meticulous, property-specific methodology focused on optimizing performance and increasing investor returns. The new four-year loan secures additional funding for approved leasing costs and allows for the release of previously escrowed funds held by the prior lender, improving cash flow at the asset level significantly.

Andrew DeNardo, President of FNRP, remarked, "This refinancing stands as a pivotal milestone for Brandywine Crossing and all our investors. Establishing a more efficient capital structure enabled us to unlock reserves, resume distributions, and persist in executing our business plan. The strength of our leasing activities—particularly retaining critical anchors and securing Burlington—has been instrumental in achieving this outcome, reaffirming our commitment to maximizing property value across our portfolio."

Brandywine Crossing benefits from favorable market conditions, featuring long-standing anchor tenants like Safeway and Marshalls, with Burlington now onboard as part of the center's diverse tenant mix. Furthermore, the location along Route 301, known for its high traffic flow exceeding 108,000 vehicles daily, significantly enhances visibility and accessibility. The area boasts an average household income exceeding $137,000 within a five-mile radius, and upcoming transit developments, including a proposed light rail stop, are expected to elevate the site's long-term value.

Going forward, FNRP plans to continue its strategic initiatives at Brandywine Crossing, which include the build-outs of Burlington, Buffalo Wild Wings GO, and Another Broken Egg Café. The firm remains dedicated to exploring additional leasing possibilities and potential sale opportunities for outparcels to further elevate the property's value.

In conclusion, the refinanced structure and FNRP's proactive leasing strategies set a promising trajectory for Brandywine Crossing, ensuring the property remains competitive and well-positioned in the retail market for years to come.