Stephen Hagerman, assistant vice president of Newport Beach,CA-based Buchanan Street Partners, says the 6.36-acre site alongStone Oak Parkway near Loop 1604 will have five class A officebuildings and two retail structures. The mix breaks out to about15% retail and 85% office. Hagerman and Buchanan senior managingdirector Thomas Sherlock arranged financing.

Sherlock tells GlobeSt.com that it wasn't too difficult toarrange project financing because of its location in northwestsubmarket and sponsorship. "The area has good fundamentals," headds. The fact that MS Walker is doing its own design andconstruction didn't hurt matters either, according to Sherlock."That was part of the sponsor's efficiency and why the overall dealhad merit," he says.

Amegy Bank in Houston provided a 24-month construction loan witha Libor-based interest rate with a 250 basis point spread. The loanto cost is 75%. MS Walker kicked in part of the equity and pickedup $3.8 million from Ascent Real Estate Advisors LLC of Greenwich,CT.