Owner of record, 3920 Atrium LP, got a sub-6% fixed-rate interest from JPMorgan Mortgage Capital Inc. of New York City, says Tucker S. Knight, associate director in Houston for Holliday Fenoglio Fowler LP. The class B office building at 3920 FM 1960 West was 90% occupied at closing.
Knight says JPMorgan's knowledge of the northwest Houston submarket as well as the terms put its offer at the top of the stack of the refinance proposals. The loan closed in 45 days, he says.
The three-story building, built in the late 1980s, will have 7% of its leases up for renewal in 2005, 8% in 2006 and then gets hit with a 25% roll in 2007, Knight tells GlobeSt.com. The lead tenant is AIG Specialty Auto Inc., which occupies 15% of the building. Other tenants are Chayn's bar and restaurant, Northchase Rehabilitation, Professional Consulting Services, the Texas Water Development Board and Medical Management Profession.
The private investor from Houston bought the One Cornerstone Atrium in 1996. "He took the cash. He's going to utilize it for other projects," Knight says. The 1.5-acre holding is assessed at $1.9 million by Harris County.
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