The refinancing is for Lockheed Martin's Missile & Fire Control facility at 2400 W. Marshall Dr. in Grand Prairie's section of the Great Southwest Industrial Park. Owner Milton Chang obtained the loan through Manulife Financial, the commercial mortgage arm of Manufacturers Life Insurance Co. of Toronto. Michael Reinhard of iCap Realty Advisors in Dallas arranged the financing for a five-year loan with 15-year amortization at a fixed 7.25% interest rate.
Reinhard tells GlobeSt.com that a couple lenders turned their backs because Lockheed Martin's lease, signed in April, is good for just five years. Another lender felt its other loans with Lockheed Martin would have caused over exposure. The lease length for a single-tenant building didn't offer enough of a comfort zone for some despite Lockheed Martin's investment-grade standing with a BBB minus debt rating and solid footing in Standard & Poor's eyes, according to Reinhard. Manulife Financial decided the positive outweighed the negative and gave the money to Chang, who acquired the building in 1987 and pumped $3.7 million into a rehab at that time.
The 111,471-sf structure delivered as an office/warehouse, but has since been converted to all office space for the engineering and design division for missile and fire control development. Reinhard says Chang will turn around part of the money to fulfill a renewal mandate to reimburse the tenant for improvements. The loan officer says Lockheed Martin is responsible for all upkeep on the structure, located about a half mile from one of its local corporate campuses. Lockheed Martin acquired the building, always used for missile and fire control operations, in a corporate takeover a few years back.
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