The borrower, headquartered in Sugar Land, TX, bought what was the BakerHughes Inc. plant at 5301 Polk Ave., with plans toreposition the 75-acre asset. "They ended up with a lot of gooddiversification of tenancy," comments Robert D. LaRue, principalwith Live Oak Capital Ltd., who arranged for financing through OhioNational Life Insurance Co. "There isn't a lot of roll, either,though they've gone in and reworked some of the leases." The maintenants are Grant Prideco Inc., Baker Oil Tools, a subsidiary ofBaker Hughes, and Pipeco Services.

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LaRue tells GlobeSt.com that Pelec Development's owners weren'tunder any deadline to refinance the asset, but decided the time wasright. "They still had another year-plus to go on the existingloan," LaRue comments. "They decided they weren't likely to getcredit for that last 5% of remaining space anyway, so they went forit." He says other lenders were interested in the project given itstenant base and location near the Houston ship channel. Ultimately,the Cincinnati-based Ohio National Life provided the best rate andterms through a fixed-rate loan with a 20-year amortization.

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In the meantime, Pelec Central City's owners aren't planning tosell the complex any time soon. LaRue says the asset is an olderone, built in the 1950s, and it has a mixed bag of buildingsranging from 5,000 square feet to 138,000 square feet. The benefit,however, is that it has appealed to the smaller users.

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"It's in a strong submarket as well," LaRue adds. "Thatsubmarket has been 95% leased for the past ten years. This was aterrific opportunity for these guys when they bought it a couple ofyears ago."

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