Tim Gillean, owner of Gillean Properties Ltd. of Dallas, secured the capital from Nomura Securities in New York City. Michael Pryluck, Nomura's assistant vice president, arranged a 30-year loan with a 10-year balloon at a fixed interest rate of 5.35%, Gillean tells GlobeSt.com about a repositioning fueled by more than $1 million in upgrades.
The new financing for Chase Place Apartments at 9825 Webb Chapel Rd. replaces a $3.6-million combo loan for acquisition and renovation with Colonial Bank. Gillean bought the 10-building asset, then London Manor Apartments, in May 2003 when occupancy was 65% occupancy. Today, it's 96.5%, he says.
The 137 units, with just four empty, average 987 sf in one-, two- and three-bedroom units. The repositioning brought a rent hike from 60 cents per sf to 75 cents per sf.
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