Robert Frank, a Dallas director for Houston-based LJ Melody & Co., tells GlobeSt.com that Sabre Realty Management locked in a seven-year loan with a 5.4% interest rate with GE Capital Access, a Horsham, PA-headquartered affiliate of the JV partner for the Meadow Creek Square center at 901 Northwest Highway in Garland. Sabre built the neighborhood center in 1985 and expanded it twice on a 10-acre tract at the northeast corner of Northwest Highway and Centerville Road.
Frank says GE Capital built in flexibility to allow Tom Thumb to shift the location, if necessary, of a service station island that it's planning to add. He says the transaction took 90 days, start to finish, due to planning for the fueling station component, a proven strategy for raising foot traffic even at successful locations. As part of the refinancing play, Tom Thumb signed a 10-year renewal, Frank says. The rest of the roster includes Starbucks, Bally's Total Fitness, Eye Care Center and sundry local retailers rounding out the mix.
Frank explains that the Addison-based Sabre elected to pull Meadow Creek Square from a portfolio of several retail properties due to "the timing in a situation where you could take this out because of where the market is" and not incur a pre-payable penalty. The deal closed with an 80% loan to-value ratio, he says.
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