PLANO, TX-Armed with a plan to flip the capital, Urban Real Estate Management has closed an $8.5-million refinance of the 123,000-sf Ruisseau Village shopping center. The fresh capital has been used to pay off an eight-year-old loan at a higher interest rate and finance all-cash purchases of development land in the Colony and Garland.
"We cashed him out quite a bit," Brandon R. Miller, senior director for Dallas-based Metropolitan Capital Advisors, tells GlobeSt.com, "and his interest payments are almost the same." Miller arranged a 10-year package with a 5.35% fixed-rate interest through the Toronto-based CIBC World Markets. He says the financing represents a 63.9% loan-to-value ratio of the 3303 N. Central Expressway property and amortizes over 30 years.
According to Miller, the Richardson-based company used $4 million to pay off an acquisition loan with a 9.25% interest rate originated in 1997. The balance, he says, funded cash purchases of retail land under contract in the Colony and Garland. "That was the vice to get the loan closed quickly," Miller explains. Several lenders floated a proposal, but "CIBC was the most aggressive," he adds.
Ruisseau Village, developed in the mid-1980s, is 90% leased to a roster that includes Thomasville Furniture, Roomstore and Oak Mill Home Furnishings. For five consecutive years, occupancy has ranged from 92% to 100%. "It has a good cash flow every year of $1 million to $1.2 million," Miller confides. "The reason we had no problem getting this deal done was the appraisal." Collin County pegs the 12-acre Ruisseau Village's assessment at $9.1 million.
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