Eli Gershenson, director of Dallas-based Quantum First CapitalLP, says the package took 90 days to pull together because theborrower of record, Westdale Northlake Ltd., wanted the new loan tokick in when the CMBS note, bearing a 4.8% fixed rate, expired forthe 10233 E. Northwest Hwy property. "We could have closed itsooner if he'd wanted," Gershenson says.

|

Northlake's owner secured a three-year, Libor-based loan fromWashington Mutual Bank, one of four lenders looking at the deal forthe 80%-leased shopping center, according to Gershenson whopartnered with Quantum president Stuart Wernick to arrange the newdebt. WaMu's interest rate and maximum proceeds earned the nod,Gershenson says, adding the deal enabled the borrower to monetizeadditional equity derived from a renovation.

|

Gershenson says the deal swung to short-term note and a Liborrate instead of a fixed rate because occupancy is 80%. "The currentoccupancy of the center limited us to a shorter term," he tellsGlobeSt.com. "In the environment we're in right now, we ended upgoing to a shorter term deal."

|

The borrower of record acquired the shopping center in 2003 fromWestdale Properties America I Ltd. of Dallas, using aQuantum-arranged loan for $3.9 million to make the close. The1960s-era asset, positioned on 8.5 acres, was overhauled in 2001,including a re-skinning and demo of 20,000 sf of inline space. Anoffice building was razed and a 60,000-sf Albertson's with afueling station brought on line. Northlake's tenant roster includesTuesday Morning, Dollar Tree and a US Post Office plus sundry otherretailers and medical services.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.