Wally Reid with the Houston office of LJ Melody & Co. secured the funding the Los Angeles-based owner of Parkwood I and Parkwood II office buildings at 10077 and 10055 Grogan's Mill Rd. in the Woodlands. Reid tells GlobeSt.com that the interest-only loan has a five-year term, no amortization and replaces funding from LaSalle Bank.
"Principal's ability to hold the note on book was instrumental in arranging the financing," Reid says. The structuring keeps Principal from selling the loan, but enables Triple Net, which is looking, to take advantage of a better offer, according to Reid. The loan has a 70% loan-to-value ratio and a floating interest rate of 2.75% over LIBOR.
Built in 1981, the class A office complex totals 228,000 sf and is 94% occupied. Reid says the credit worthiness of the main tenant, Entergy, which occupies 45% of the asset, helped secure the financing. Entergy's lease runs through December 2006.
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