St. Johns County, FL — Dixon Link Capital successfully arranged a $12.3 million construction loan to bring over 40,000 square feet of retail to one of Florida’s fastest-growing regions.
Faith Link, Managing Partner at Dixon Link Capital, worked on behalf of Cross Regions Group to secure a construction loan to develop Fountains Retail Square, a multi-tenant retail center in St. John’s County. The project is part of Fountains East, Phase II of Cross Regions’ 100-acre mixed-use development, Fountains St. Johns. Fully pre-leased, Fountains Retail Square will bring walkable retail, restaurants, medical offices, and more to the area.
Transaction Highlights
CRE Financing Success Through Strong Relationships
Despite the project’s clear strengths: seasoned borrower, ideal location, and solid tenant base, finding the right lending partner for the $18.4 million ground-up construction project had its challenges. Given the project’s size relative to some lenders’ borrower exposure limits, complex ownership structure, and timing amid lingering interest rate uncertainty, many go-to lenders within the borrower’s existing network were unable to deliver. As a result, they were considering utilizing high-cost private equity to fund the project.
Dixon Link Capital, through its strong network of lenders, helped the borrower navigate a challenging capital markets environment and successfully fund the project by establishing a relationship with a new regional bank partner. Ms. Link ensured lender clarity around the project’s complex ownership, which included international stakeholders, and alignment of borrower and lender expectations and priorities throughout the underwriting process. Additionally, the loan’s construction-to-permanent structure supports the ongoing success of the retail project while minimizing the borrower’s overall transaction costs.
Read Jacksonville Business Journal‘s coverage on the project and loan transaction here.
Strong Retail Demand, Prime Location, Ideal Developer
As one of the fastest-growing counties in the country, St. Johns County stands out not only as a great place to live and work but also as a destination for businesses to expand operations. With a population growth rate of nearly 40% over the last ten years and a top-rated school district, demand for housing, medical care, shopping, dining, hotels, and commercial space continues to soar. Fountains Retail Square will play a critical role in meeting the community’s needs.
Cross Regions Group holds an extensive track record of successful retail and mixed-use developments since its founding in 2014. Led by CEO, David Ergisi, Cross Regions Group continues to develop over 1 million square feet in the northeast Florida area. This retail component of Fountains East represents a continuation of the company’s investment in and strong growth outlook for Northeast Florida.
The project is conveniently located along the highly visible I-95 and CR-210 corridor. Situated within the Fountains St. Johns development in the heart of St. Johns County, Fountains Retail Square will complement the existing tenant base within the community. The project is poised to attract residents and tourists alike, as it is within walking distance of Ascension St. Vincent’s Hospital, the future Home2Suites by Hilton Hotel, and the neighboring 276-unit multifamily development. This site is within a 5-minute drive from major grocers, area schools, office parks, and St. John’s Golf & Country Club. It is close to numerous established residential communities, including the new Beachwalk master-planned community, with its famous Crystal Lagoon and Dream Finders’ new Beacon Lake community.
For CRE Development Projects, Dixon Link Capital Delivers
Even for strong projects led by seasoned, successful real estate developers, securing financing through the usual sources can be a challenge.
Dixon Link Capital has the expertise, resources, and relationships to source creative, competitive financing solutions for commercial real estate development projects. Ready to fund your next CRE deal? Get started here.
Dixon Link Capital is a commercial mortgage broker and capital advisory firm based in Jacksonville, Florida, specializing in commercial real estate.
