IPA Capital Markets Arranges $60.7 Million in Acquisition Financing for Two Texas Shopping Centers
January 06, 2025
DALLAS, Jan. 6, 2025 - IPA Capital Markets, a division of Marcus & Millichap (NYSE: MMI) specializing in capital markets services for major private and institutional clients, has arranged $60.7 million in senior debt financing and preferred equity for the acquisition of two retail centers totaling 288,063 square feet in McKinney and Longview, TX.
The IPA Capital Markets team was led by Adam Mengacci, managing director, in the firm’s Dallas office. Mengacci represented Younger Partners Investments (YPI) to secure and structure 80% of the capital stack. The three-year bank loan was provided by Bank United, N.A. and Dallas-based TriGate Capital, LLC, provided the preferred equity.
Launched in July 2020, YPI seeks to acquire grocery-anchored, lifestyle and neighborhood shopping centers. The acquisition of these two stabilized assets further increases YPI’s DFW presence and allowed them to expand their footprint outside of the DFW MSA. Since inception YPI has acquired nearly one-million square feet of retail property throughout the state of Texas.
Currently 98% occupied, 380 Towne Crossing in McKinney has an impressive tenant roster and is shadow anchored by Target and Lowes. Longview Towne Crossing represents a 96% occupied center leased to PetSmart, Five Below, and Old Navy along with shadow anchors, Target and Kohl’s.
“Retail fundamentals in Texas are among the strongest in the country, and this financing showcases that both lenders and institutional equity will get aggressive for best-in-class sponsors and centers located within exceptional demographic trade areas,” said Mengacci.
The IPA Capital Markets team was led by Adam Mengacci, managing director, in the firm’s Dallas office. Mengacci represented Younger Partners Investments (YPI) to secure and structure 80% of the capital stack. The three-year bank loan was provided by Bank United, N.A. and Dallas-based TriGate Capital, LLC, provided the preferred equity.
Launched in July 2020, YPI seeks to acquire grocery-anchored, lifestyle and neighborhood shopping centers. The acquisition of these two stabilized assets further increases YPI’s DFW presence and allowed them to expand their footprint outside of the DFW MSA. Since inception YPI has acquired nearly one-million square feet of retail property throughout the state of Texas.
Currently 98% occupied, 380 Towne Crossing in McKinney has an impressive tenant roster and is shadow anchored by Target and Lowes. Longview Towne Crossing represents a 96% occupied center leased to PetSmart, Five Below, and Old Navy along with shadow anchors, Target and Kohl’s.
“Retail fundamentals in Texas are among the strongest in the country, and this financing showcases that both lenders and institutional equity will get aggressive for best-in-class sponsors and centers located within exceptional demographic trade areas,” said Mengacci.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.