North Avenue Capital's $7.5 Million USDA Commercial Loan Provides Strategic Refinance to Laurel Mall
North Avenue Capital (NAC), a specialized commercial lender, has announced the closing of a $7.5 million USDA Rural Development Loan to Laurel Mall Tenant, LLC. The Borrower owns and operates Laurel Mall, a 550,000 square foot retail mall in Hazleton, PA that is occupied by a strong mix of national and local retailers, including Old Navy, TJ Maxx, Foot Locker, T-Mobile, Maurices, and more. Laurel Mall took advantage of the opportunity to refinance its existing debt and secure funding for various tenant improvements. With a strong financing structure in place, Laurel Mall will be welcoming new tenants including Hobby Lobby, Amazon, and Planet Fitness later this year.
Laurel Mall is a single-level mall located in Hazle Township, Pennsylvania, was founded in 1973, and boasts an impressive 96% occupancy rate. The retail center provides storefront to over 60 commercial tenants, from clothing to beauty, healthcare to recreation, as well as underground parking, free Wi-Fi, a Play Zone Area for kids, and other amenities. The mall’s management company, Lexington Realty International, has a history of nearly 35 years of experience managing commercial real estate assets, and a current portfolio of over $470 million.
With the addition of 8 new full-time jobs, Laurel Mall plays a central role in providing direct and indirect employment for more than 150 rural Americans. This level of economic development and job creation is the very heart of why NAC and USDA Rural Development exist. Not only is this business helping sustain gainful employment in the region, but it is also generating meaningful sales tax revenue, which has a direct benefit to Hazleton and rural Pennsylvania.
According to NAC President, Eric Johnson, “Laurel Mall is a prime example of how the public-private partnership between the USDA and NAC is bringing stability to regions of the country where the tangible impact of economic growth isn’t as pronounced. Too often, that growth stays closer to large metropolitan hubs.”