DALLAS-A Dallas import retailer, who gives Wal-Mart a run for its money, has secured $17.6 million by refinancing two shopping centers in Dallas and Frisco to replace recourse loans with non-recourse and get some expansion capital. Though the expansion plan's too preliminary to discuss, the Sam Moon Trading Co. centers are collateralizing 15-year loans.
Kip Sowden and Brad Francis with Realty Group America in Dallas arranged the double financing, with the Dallas loan being the last to close. Prudential Mortgage Capital Co., headquartered in Newark, NJ, funded both deals at an interest rate with a spread of less than 100 basis points over the US Treasury, Paul Geyer, a Prudential principal in Dallas, tells GlobeSt.com.
He says brothers Sam and Daniel Moon spun separate deals that retired recourse loans from TexasCapital Bank and provided capital for a third center. "They'll be expanding throughout Texas," Geyer says, adding it's too early in the game to discuss any new locations for the popular Texas retailer.
Geyer says Prudential's learning curve was understanding a business plan driven solely by the import business. "The proof is in the sales and the consistency of the sales," he says.Sam Moon Centers are known throughout North Texas for its prices on an inventory of purses, jewelry, luggage, gifts and home decor items, attracting shoppers by the busloads from neighboring states.
A 38,626-sf center, which opened about two years ago at 2449 Preston Rd. on the ring road of Stonebriar Mall in Frisco, secured a $5.6-million loan while the 126,355-sf flagship at 11826 Harry Hines Blvd. in Dallas was used to obtain a $12-million refinance, Geyer says. Both centers are fully occupied. Scott Frank in Pru's Dallas office originated the loans.
During the same timeframe, Prudential closed $86.6 million in Texas deals for conduit, FHA and Fannie Mae programs. The lion's share went to multifamily construction and refis, except for a $4.2-million, 10-year loan for Kerrville Country Club Plaza in the Texas Hill Country town. Geyer, who packaged the deal, says the money will be used to develop an out-parcel.
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