HOUSTON-A local investor has obtained a $40.3-million, one-year loan to buy the 154,950-sf Baylor College of Medicine Faculty Center in the Texas Medical Center.
The 18-story, class B office building, situated on a little more than one acre at 1709 Dryden Rd., was placed on the sales block in fall 2005. Holliday Fenoglio Fowler LP in Houston represented the local seller.
"There was a significant interest in this building because of its location," Frank Satterfield, founder and principal of Houston's Harbor Capital Group, tells GlobeSt.com about Medical Towers, which is leased to Baylor through 2013. Constructed in 1954 and renovated last year, it is fully leased, including a 23,000-sf retail component.
"It was also attractive because it's one of the few privately-owned for-profit buildings in the medical center," Satterfield adds. "That's a huge advantage. And, the people who own the building believe it has tremendous upside potential."
The two-year-old Harbor Capital Group, which recently hit the $1-billion mark for commercial loans, secured the financing through Philadelphia-based RAIT Investment Trust. "We knew this particular bridge loan was ideally suited for RAIT," he explains, "and this partnership will benefit the buyer."
Satterfield says RAIT's floating-rate, interest-only loan was a "straight-up" deal that will likely be refinanced within a year. The loan-to-value isn't available, but typically medical office product generates a 75% ratio. Similar deals also would close with a floating rate of 350 to 500 basis points above Libor. When it's time to secure permanent financing, he says many different companies will be solicited.
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