Insurer Pitches Senior Retail Debt

CNO Financial is shopping the senior portion of a performing

$19.8 million fixed-rate loan on a shopping center in Hager-
stown, Md.
The insurer, based in Carmel, Ind., originated the construc-
tion/permanent loan on the 115,000-square-foot Shoppes at
Hagerstown in 2007. The mortgage, with a 6.04% coupon, had
an initial balance of $22.3 million. The maturity date is unclear.
Investors can bid on a senior participation interest of up
to 80%, with CNO retaining the junior portion. Bidders must
specify a yield requirement. Initial offers are due Aug. 28, and
final offers will be taken Sept. 18.
The property is at 18015 Garland Groh Boulevard, near In-
terstate 81 and Route 40, and about 70 miles west of Baltimore.
CNO is offering the participation interest via its investment-
management arm, 40/86 Advisors. Mission Capital is handling
the auction.
CNO unsuccessfully tried to sell the loan two years ago via
an offering of 17 performing mortgages totaling $125 million
on commercial properties around the country.
Shoppes at Hagerstown was 88% occupied at yearend. Its
tenants include Best Buy, Dollar Tree and Party City. The prop-
erty is next to a separately owned retail center with 220,000 sf.
That complex’s tenants include Wal-Mart Supercenter, Home
Depot, PetSmart and Dick’s Sporting Goods. 

COMMERCIAL MORTGAGE ALERT: Aug. 16, 2013, 5 Marine View Plaza, Suite 400, Hoboken NJ 07030. 201-659-1700