Westwood Financial has secured financing to accelerate its strategy of buying more grocery‑anchored and services‑based shopping centers across its core Sun Belt markets.
The Los Angeles‑based investment firm closed a $145 million upsize to its corporate credit facility from lenders led by KeyBank, boosting total borrowing capacity to $470 million and giving the company expanded flexibility for acquisitions, refinancing and balance‑sheet optimization.
The move follows a string of recent capital‑raising efforts, including $50.8 million in refinancings for centers in Arizona and Colorado.
Westwood, with a portfolio of more than 125 properties and occupancy hovering around 96%, is positioning itself to compete aggressively as investor demand for grocery‑anchored retail continues to intensify. According to CoStar data, the volume of retail property sales is up by 12% year-over-year to $69 billion.
To understand how the new financing shapes Westwood’s strategy, CoStar News spoke with Chief Financial Officer Juyuan Wei, who has spent more than two decades navigating real estate cycles, shifts in capital markets and changing lender appetites.
He joined Westwood in 2018 and was promoted to CFO in 2023. He directs the company’s strategic planning, business development and risk management. Before joining Westwood, he worked in finance for more than three years at Irvine Co.
The following Q&A is edited for clarity.
How does the expanded credit facility change Westwood's playbook?
The $145 million of new capital changes how we approach the next several years. In the near term, it lowers our overall cost of debt, but just as importantly, it improves how our long-term maturities are staggered.
With the revolver now expanded to $190 million and fully undrawn, we have substantial liquidity available for 2026. We expect attractive acquisition opportunities, particularly for high-quality grocery-anchored centers in our core markets.
Macro uncertainty is outside our control, but this liquidity puts us in a position to not only withstand disruption but also to lean in if a downturn creates opportunity.
Where are the most compelling opportunities?
In December, I met with about a dozen institutional capital partners in New York. Nearly all said they have significant equity ready to deploy, especially into grocery-anchored centers.
That aligns with what we’re seeing on the ground. Our core markets — Southern California, Arizona, Texas, Atlanta, the Carolinas and Florida — have seen population growth of roughly 8% to 10% since 2020, with income growth of 8% to 12%.
That demand will keep competition intense in 2026. We expect cap rates to continue compressing as more capital chases a limited supply of high-quality assets.
From an underwriting standpoint, we generally target an unlevered internal rate of return of 8% to 9%. It’s a benchmark, not a hard rule, and we’ll adjust as market conditions evolve.
How are you managing upcoming maturities?
We have about $350 million of mortgages maturing over the next three years, with roughly $300 million concentrated in 2026 and 2027. The recast smooths the maturity ladder and reduces outsized exposure in any single year.
Our weighted average interest rate over the next two years is about 4.25%, so refinancing today wouldn’t be accretive. But if SOFR [the secured overnight financing rate] or Treasury rates move lower, we’re well positioned to act.
Looking beyond 2027, we’re evaluating private placement debt as part of the next phase of institutionalizing our balance sheet. This recap is an important step in that direction.
What is your ideal financing structure?
We’re in a period of growth and transformation, so flexibility is critical. Our capital structure will continue to evolve as market conditions and strategy change.
Although our five-year term loans are variable, we plan to hedge portions of that exposure through interest rate swaps. The goal is to keep floating-rate debt around 5% of the total stack.
Our overarching goal is to position Westwood optimally to acquire grocery-anchored neighborhood centers while mitigating controllable risks and preserving long-term flexibility and optionality.