85%-Leased Office Complex Passes Muster for $23M Refi

Dallas-based Beltway Commercial Real Estate Co. refinanced the 101,000-sf Creekview I at 2301 N. Greenville Ave., and 151,242-sf Creekview II at 1300 E. Lookout Dr. Located in Richardson's rebounding Telecom Corridor, the buildings' average occupancy carried weight with lenders, says Mark Fisher, senior director in Dallas for LJ Melody & Co. "We liked the reception we received from the lenders," he says.

Fisher tells GlobeSt.com that the Greenwich, CT-based RBS Greenwich Capital Markets Inc. was in a four-way tie for the deal. "The holdbacks were minimal and with the spread and the terms, Greenwich had the best overall package," he says about a widely shopped deal. The 10-year package, with a 30-year amortization and 82% loan-to-value ratio, carries a fixed-rate interest of 5.5% and coverage to protect the lender from a major tenant rollover, according to Fisher.

Aviall Inc. occupies 91,000 sf or more than half of the three-story Creekview II, which is 67% leased. Fisher says the lease rolls in six years. But, he adds, Beltway locked in 50,000 sf of new leases and renewals in the months leading up to the refinance to boost the complex's average to 85%.

Fisher says the refinance took 90 days to close for Creekview Corporate Center, built in 2000 and 2001. The borrower made a clean sweep of another loan plus took out $1 million to $1.5 million to cover the deal's cost, according to Fisher.