SAN ANTONIO-With one year invested into the plan, a private investor from Chicago has reworked the financing for the 128,000-sf Concourse I and II. The $16.1-million refi has a 10-year term at a sub-6% fixed-rate interest.

The straight-up refinance for the 11.5-acre retail asset, spanning both sides of East Rector Street in the north central submarket, has replaced acquisition financing from Chicago-based LaSalle Bank with a loan from Wells Fargo Commercial Mortgage. Rob LaRue with Houston-based Live Oak Capital Ltd. tells GlobeSt.com that the loan was secured at maximum leverage of 75% to 80% and includes an interest-only provision. "Wells Fargo was smart enough to realize they had to be pretty aggressive to secure the business," he says, adding the deal was inked as the borrower hit the amortization mark on the bank note.

LaRue says Concourse I and II, developed in 1995 at 815 E. Rector St., was 93% leased when the refi went into play. The center is leased and managed by United Commercial Realty's Sarah Teel in the San Antonio office. Concourse I, situated on the south side of the street, is made up of Party City, TJ Maxx and CompUSA, which has a cross-access agreement with Target Corp. and Concourse II has a Babies R Us anchoring in-line space.

La Rue says underwriting the deal are long-term leases across the board and the location. In addition, the shopping center is situated in the US Highway 281-Loop 410 corridor, sitting close to the San Antonio International Airport and beside two under-construction hotels.