Recent Transactions

Kostas Kavayiotidis, Mike Davis, and Matthew Farzinpour of PSRS arranged the $54 million acquisition financing of a grocery-anchored shopping center in Oxnard, California. The subject property is a 357,000-square-foot open-air shopping center home to anchor tenants like Walmart, Home Depot (NAP), TJ Maxx, Nordstrom Rack, Bob’s Discount Furniture, and Dick’s Sporting Goods. The property also features national shops and pad tenants including In N Out, Chipotle, and BJ’s Restaurant. Financed with life insurance company execution, PSRS provided its borrower with a seven-year loan term, including four years of interest only.

Kostas Kavayiotidis and Matthew Farzinpour of PSRS arranged the $14.94 million acquisition financing of a retail shopping center in Chicago, Illinois. The subject property is a grocery-anchored shopping center consisting of 117,000 square feet of retail space occupied by Jewel-Osco, Marshalls, Famous Footwear, and Pet Smart. Financed with one of our correspondent life insurance companies, PSRS provided its borrower a non-recourse loan, with a 10-year term and a 30-year amortization.

Mike Davis and Tony Messiah of PSRS arranged the $4.35 million refinance of a commercial kitchen property in Columbus, Ohio. The subject property is a 4,800-square-foot, single-story multi-tenant commercial kitchen with 21 individual kitchens. The property offers private, turn-key kitchen solutions for local food & beverage businesses. Financed with one of our correspondent life insurance companies, PSRS provided its borrower with a three-year loan term and a 25-year amortization.

Current 10-Year Treasury Rates: At 4.61% following a significantly higher-than-expected Retail Sales report.
Weekly Rate Movement: Rates are up by 19 basis points this week (from 4.42% on 4/8) and 30 basis points since April 1 (from 4.31%).
Current 2-Year Treasury Rates: Sitting at 4.97%, up by 18 basis points this week (from 4.79% on 4/8) and 27 basis points since April 1 (from 4.70%).
March CPI Figures: Headline Consumer Price Index (CPI) reported at 3.5% year-over-year, with a 0.3% increase from last month. Core CPI rose by +0.4% month-over-month, reflecting an annual inflation pace of +4.50% for the first three months of the year and +3.9% over the last six months.
Impact on Fed Policy: The bond market delays expectations of a cut in the overnight Fed Funds rate due to persistently high inflation. The Fed remains cautious, holding off on any dovish policy shift until monthly Core CPI and Core PCE inflation prints are at +0.2% or lower again.
Historical Context: Previous core inflation prints in November and December last year prompted a rally, leading to a cycle low in 10-year rates of 3.80% in late December. The yield curve at that time implied a lower Fed Funds rate by over 150 basis points by year-end 2024. However, recent economic strength and inflation uptick have put the Fed's dovish stance on hold.