The refinance will put $1.4 million at RM Crowe's disposal forthe upcoming work on the 95%-leased, class B-plus building at 8235Douglas Ave. according to Lance Wright, regional director in Dallasfor the Norwalk, CT-based lender. He tells GlobeSt.com that $23.9million was turned over in the initial funding, with the balance tobe doled out at Libor-based interest rates in $500,000 incrementaldraw-downs. The result will be a blended interest rate on athree-year loan, with the lion's share fixed at about 6%, heexplains. The interest-only financing represents 80% loan tovalue.

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The 13-story office tower and seven-story, 460-space parkinggarage abuts RM Crowe's Fidelity Bank Building and is across thestreet from its Park Cities Hilton, a stronghold in one of thecity's tightest office submarkets. Wright says GE provided anon-book loan, a decision mortared by the location, asset qualityand longstanding relationship between borrower and lender.

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"We're a little more particular as far as the assets we investin and the markets. It's a class B plus because of its age, butit's a class A location," Wright stresses. He cited the"irreplaceable location" and "quality of the real estate" as thedealmakers. The building was developed in 1979 on a 1.75-acretract.

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The 43-tenant building's lead is Frost Bank. Wright says leasesroll gradually over the next five years, but that opens the doorfor the owner to bump rents to market rate. The current rate is $23per sf to $24 per sf, with 50 cent per sf annual bumps. "Keepingthis building occupied is not a risk," he adds, pointing out thatlongevity is commonplace for the tenant base.

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RM Crowe's make-over plan includes renovating several floors inaddition to funding leasing demands. "GE Real Estate has been areliable financing source for us for many years and provided thefunding we needed to maximize the value of this quality property,"R. Maurice Crowe Jr., the borrower's CEO, says in a pressrelease.

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