PLANO, TX-A Frisco developer, landing a $7.5-million loan for the plan, has bought 14.7 acres for an 85,000-sf retail project after convincing the electric company to abandon a right of way so the site could be developed.
The Hebron Group and local partner, Maso Properties, got interim, floating-rate financing with an 85% loan-to-cost ratio and phased-in equity clause from Southwest Securities Bank in Dallas, Brad Donnell, senior director for Dallas-based Metropolitan Capital Advisors Ltd., tells GlobeSt.com. He says the financing stipulates the project can't go vertical on the northeast corner of McDermott Road and Independence Parkway until the 25,200-sf first phase hits 50% preleasing and a couple pad sites are sold. When the financing was inked, the project's team, Princeton Partners of Dallas, had commitments for 40% of the first phase, according to Donnell.
Donnell says the phased-in equity "weeded out a couple lenders." He says the developer is required to immediately turn over gain from pad site sales to the lender to fulfill the equity requirement.
Donnell predicts ground will break in two to four weeks, marking the start of the four-year-old Hebron Group's fourth project in Dallas/Fort Worth. The build-out plan calls for 85,000 sf of class A retail space, now being marketed at $18 per sf to $23 per sf.
Donnell says Hebron principal Moyez Thanawalla pushed to get a right of way abandoned to get one of the last undeveloped retail corners in West Plano. The land, sold by Imperatum Group of Lancaster, TX, is assessed at $3.7 million by Collin County. Until Thanawalla's intervention, the acreage's development prospects were deemed practically nil because of the easement's path, according to Donnell.
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