Shopping Center Business

MAY 2015

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228 • SHOPPING CENTER BUSINESS • MAY 2015 years. Mariano's has made a push into many infill markets. We assisted with one development with an infill Mariano's lo- cation, at Ravenswood Station, which is on the north side of the city. In addition to Mariano's, there is an LA Fitness and Sears Auto Center, with housing adjacent. We always like to see a good mix of ten- ants that are appropriate for the other parts of the mixed-use development. If you have an office dominant mixed-use project, you are likely to see more res- taurants. Each project has a slightly differ- ent mix, depending on what their ultimate goal is. We see restaurants as a conve- nience for the office or apartment tenants. SCB: What advice would you give a mixed-use developer who is getting ready to seek financing? Kehr: As bankers, we always look at the numbers. The project has to be economi- cally viable, obviously. As an example, if we have a mixed-use development that in- cludes retail and apartments, we will want to see that the developer has strong expe- rience in both property types. We want to make sure they are using a good retail leasing agent. We want them to come to us with some pre-leasing in place from tenants who are appropriate for that site. If they are national tenants, that's great, but again, that really depends on the site. For the apartment component, we will look at the market and ask ourselves if it is a market appropriate for more apart- ments, and, if so, if the rents are obtain- able in the market. SCB: What would throw up a red flag to you in a prospective project? What don't you want to see in a deal? Kehr: In any development that is mixed- use, you have a lot of moving parts. We like to know about their plans early on. Today, the banks are really aligned with what the developer wants. Developers to- day do not want to take on too much risk. They know they need to have pre-leasing in place. In mixed-use developments with apartments, we often see retail-oriented developers come to us with no plan in place for a professional management firm partner for the apartments. We like to see developers without apartment expe- rience partner with companies that have deep experience in that sector. We always review the floorplans for apartments to make sure they are appropriate. If there is any governmental support, we will re- view that to see that those agreements are in order or will be in order prior to loan closing. We want to confirm that the funds will be available when needed for the development. Generally, the develop- ers we work with are very experienced. In most cases, they come very well pre- pared. I'll also add that they appreciate any questions that we might have; in the end, they know that those questions help reduce their risk. SCB M AY O R PA U L S . L E O N I M A Y O R P R O T E M A L A N D . W A P N E R I C O U N C I L M E M B E R S J I M W . B O W M A N , D E B R A D O R S T - P O R A D A A N D P A U L V I N C E N T A V I L A ontariothinksbusiness.com Ontario Mills partnered with the City of Ontario to continue to add an even greater selection of popular designer brands including Nordstrom Rack, Last Call By Neiman Marcus, and J. Crew Factory, further solidifying our prominent role as California's largest outlet and value retail shopping destination. Ontario is a City that thinks like a business. Ontario Mills M A D E I N O N TA R I O Marc Smith VP/General Manager, Ontario Mills, a Simon Company Today, the banks are really aligned with what the developer wants. Developers today do not want to take on too much risk.

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