Red Oak Capital Holdings, LLC has provided $8.60 million for Irondequoit Plaza, a neighborhood retail property located in Metro Rochester, NY. The loan was closed under Red Oak’s Core Bridge Loan Program, a fixed-rate lending program for institutional-quality assets that are in transition.

The interest-only, non-recourse loan carries an interest rate of 9.50%, a three-year term, and represents 65.60% of the center’s stabilized value. The Red Oak team of Stratos Athanassiades, Thomas Gorski, and Jesus Martinez originated and underwrote the loan, which was brought to the company by Polaris Funding’s Alex Mermelstein on behalf of the borrower, an affiliate of Sky Capital Group.

Situated on 21 acres, the 205,000-square-foot property houses a mix of 22 national and local tenants. The Red Oak loan provided capital towards the purchase of the 123,479-square-foot non-anchored portion of Irondequoit Plaza. The financing does not collateralize the adjacent Wegman’s supermarket, which the sponsor also purchased for a combined acquisition price of $16.45 million. The borrower plans to spend approximately $750,000 in capital improvements, tenant improvements and leasing commissions to make physical upgrades to the asset and re-tenant spaces as they rollover under longer terms with slightly higher market rents. The borrower plans to retire the Red Oak loan with permanent financing or the proceeds from a potential separate sale of the Wegmans and outparcels.