Financing a Well-Leased Retail Center in the Portland Metro

Property Gallery 9 Photos

Sherwood Market Center Signalized Intersection Site Plan Hobby Lobby Main Building & Pylon Sign Inline Shops Shop Building Dining & Services Pad Building

THE OPPORTUNITY
A Stable Center With a Clear Path to More Value

Sherwood Market Center wasn't a turnaround. When the sponsor went under contract in early 2022, the center was 92% leased to 27 tenants, including a signed LOI with Raising Cane's for a new ground-lease pad. The upside came from finishing what was already in motion: delivering the Raising Cane's pad, making modest improvements across the property, leasing the remaining vacancies, and setting up the six outparcels so they could be sold individually over time.

The sponsor, an experienced retail repositioning firm with more than 5 million square feet across 60-plus properties, needed a lender who could fund the acquisition and the follow-on work in one package. Anthony Longo of Alpha Capital CRE brought the deal to RRA Capital. At the time of closing, it was RRA's largest loan to date.

THE PROPERTY
Nine Buildings at One of Sherwood's Busiest Intersections

Sherwood Market Center sits at 16030 SW Tualatin-Sherwood Road, at the intersection with Oregon Route 99W, about 13 miles southwest of downtown Portland. Route 99W carries about 38,400 vehicles a day past the property and connects to Interstate 5 five miles north.

• Size: Nine single-story buildings on nearly 14 acres, built between 1995 and 2002
• Square footage: About 129,000 square feet, including the new Raising Cane's pad
• Parking: 627 spaces, with five entrances off SW Tualatin-Sherwood Road and SW Langer Drive
• Outparcels: Six, including Chase Bank, 7-Eleven, Jiffy Lube, La Petite Academy and the Raising Cane's pad

The market fundamentals were strong. Sherwood's retail vacancy was just 2.6%, almost nothing new was under construction, and median household income within three miles topped $100,000. The city also draws visitors as a gateway to Willamette Valley wine country.

THE RRA SOLUTION
Acquisition and Follow-On Capital in One Loan

RRA provided a $25,000,000 non-recourse bridge loan with a three-year initial term and two 6-month extension options. The loan closed on March 23, 2022. Most of it funded at closing for the acquisition. The rest was a follow-on facility for capital improvements, tenant improvements and leasing costs, including the sitework needed to deliver the Raising Cane's pad.

THE EXIT
Repaid in 16 Months

The sponsor repaid RRA's loan in full on July 28, 2023, about 16 months after closing and more than a year and a half before the initial maturity date. The extension options were never used. This was the start of a lasting relationship. The same sponsor has since returned to RRA for more financing, including the acquisition of Gresham Town Fair in 2025.