Aries/Conlon Capital has arranged a $3.4 million non-recourse bridge loan for the refinance of the Golf Higgins Center strip mall in Hoffman Estates, Illinois on behalf of the property’s owner, Jagmohan Jayara. In the process, the firm also helped to secure the village’s first Ace Hardware store as the property’s anchor.
The new Hoffman Estates Ace Hardware celebrates its official grand opening at 12 p.m. on Friday, September 15, 2017. Mayor William D. McLeod of the Village of Hoffman Estates will attend the celebration. Aries/Conlon Capital Principal and CEO Rushi Shah arranged the financing and is also a co-owner of the new store.
Located at 675 W. Golf Road in Hoffman Estates, Illinois, the 28,308 square foot retail strip mall was previously anchored by tenant, Tiger Direct, which shuttered its brick and mortar stores in favor of an online strategy. At the same time, Hoffman Estates’ residents and village officials were lobbying to attract a hardware store for the community.
“The borrower was looking to refinance his maturing bank loan and needed a tenant that would underwrite well for the lender,” said Shah. “I knew the village was looking to attract a local hardware store. In addition, my friend Mike Patel, who had managed the Skokie Ace Hardware for 24 years, was interested in opening his own store. Several conversations later and the result was a win for everyone. The community got the hardware store they desperately needed, Ace Hardware added to their already 100 locations in the Chicago area, the new store owner transitioned from employee to ownership, the lender hedged its potential risk, and the borrower gained a strong tenant and successfully refinanced without the burden of recourse.”
The non-recourse bridge loan Aries/Conlon Capital secured not only paid off the borrower’s existing loan, it also enabled the funding of the necessary tenant improvements to open the Hoffman Estates Ace Hardware store. It will be refinanced to permanent debt in the future.
“This deal wouldn’t have happened without Rushi and Aries/Conlon Capital,” said Jayara. “We couldn’t have asked for a better solution than the one the they delivered. We are proud to be a part of bringing Ace Hardware to our community, and thanks to Rushi, are now favorably positioned for ongoing success.”
“As we brought the parties together, I was impressed with the village support and strength of the Ace Hardware brand,” said Shah. “Ace is growing leaps and bounds in the race for hardware marketshare because of its level of customer service, specialty offering and internet-proof business model. As a result, I decided to continue to be involved in this new venture as one of the store’s owners, and will leverage my entrepreneurial drive to ensure its ongoing success. I also look forward to sharing my first-hand experience financing and owning a Ace Hardware store with retail property owners with Ace Hardware tenants who are looking to refinance.”
The public and press are invited to attend the grand opening and the festivities will continue throughout the weekend. Customers can enjoy popcorn and vendor product demonstrations, while taking advantage of special offers including deep discounts on leading products. For more information visit the store’s Facebook page .