"The toughest part was that it's in La Colinas, a submarket with a 26% vacancy rate," Brad Donnell, senior director for Dallas-based Metropolitan Capital Advisors, tells GlobeSt.com. The lenders' appraisers needed some convincing that buildings such as Hackberry View at 2201 W. Royal Lane aren't the culprits for the high vacancy. A closer assessment showed the building's 7% vacancy falls right where it should when stacked up against comparable multi-tenant, class A neighbors, according to Donnell.
The added review, however, delayed the loan closing, which got under way in April and just now garnered final signatures from lender JPMorgan, according to Donnell. Cross Timbers' loan carries a 10-year term with 30-year amortization and 7.1% interest. Donnell admits the rate falls on the high end of today's scale, but confides that the lender refused to budge on the fixed rate for an 80% LTV that was agreed to four months ago when the loan application was made. The construction loan was to expire this year, Donnell says.
Cross Timbers developed the 114,537-sf Hackberry Lane in 2000. Stream Realty Partners holds the leasing and management contracts.
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