La Jolla Bank of Dallas provided the loan for the owners of Alamo Quarters, constructed in the late 1890s. Naturally, a long-term lease for 18,289 sf with the owner of record, Alamo Quarters Ltd., was a good component to take to the lender.
Finish-out will take four to five months, Sean P. Bushe, regional loan officer for La Jolla Bank, tells GlobeSt.com. After the work is done, the loan will roll over to a 25-year amortization. Bushe declined to talk about loan terms, but did say the financing came at a very competitive interest rate.
Bushe says the Dallas partnership acquired the building in 1997. Fuddruckers is the lead tenant. With the Pat O'Brien's lease, there is less than 14,000 sf of vacant space. Bushe says the building has been remodeled several times through the years.
Pat O'Brien's has several franchised sites, but the San Antonio location is its first corporate expansion. Founded 67 years ago, the New Orleans restaurant has been situated at 718 St. Peter in the French Quarter since 1942. The popular venue got its start during Prohibition, operating as Mr. O'Brien's Club Tipperary, a New Orleans speakeasy with doors that only opened to those who knew the passwords, "Storm's Brewin."
According to Dallas-based Weitzman Group's midyear retail report for San Antonio, Pat O'Brien's is in good company. Several other prominent restaurants have expanded into the San Antonio market including the Cheesecake Factory, Gallagher's Steakhouse, Double Dave's Pizza, Macaroni Grill and Krispy Kreme.
San Antonio supports about 31 million sf of multi-tenant retail space. Occupancy is 85% down from 86% at the end of 2001, according to the report. Inline space ranges from $18 per sf to $23 per sf for class A product; $15 per sf for class B; and $12 per sf to $15 per sf for class C.
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