RICHARDSON, TX-In a straight-up refi, Cencor Realty Services and the Weitzman Group have secured $8 million of fresh capital to retire more expensive financing against the 163,414-sf Dal-Rich Village.
"It was a basic refi to lower the rate and extend that low rate for 10 years," Mark E. West, managing director in Dallas for Holliday Fenoglio Fowler LP, tells GlobeSt.com. He says he had 10 to 20 lenders lined up with quotes to rework the financing for the 69%-leased shopping center at 101 S. Coit Rd. in Richardson. The retired debt, he says, was "at above-market rates."
West says the deal's only hurdle was the vacancy. "There were several lenders who wanted to do the deal," he stresses. The New York City-based Bear Stearns Commercial Mortgage Inc., which previously had financed Cencor/Weitzman transactions, won the nod with "the best price and the best structure," he says. The financing carries a sub-6% fixed-rate interest and closed at a 70% loan-to-value ratio.
"Although the current occupancy levels at Dal-Rich Village were below market averages, the center is very well located and has operated at above market in the past," West says in a press release. Built in 1965 and renovated in 1996, the four-building center is anchored by a 26,000-sf Whole Foods grocery store alongside nationals like Blockbuster and Hallmark Cards. The center's average rent is $16 per sf, according to HFF. The 12.6-acre Dal-Rich Village, assessed at nearly $9.8 million, has been part of the Cencor/Weitzman portfolio since the mid-1980s.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.