FORT WORTH-A local investor has refinanced the 177-unit Second Dimension Apartments for $4 million, underwriting a plan to buy another piece of commercial real estate. The 80% loan-to-value note has a 5.53% fixed-rate interest.
Sean P. Bushe, regional loan officer for La Jolla Bank in Dallas, originated the 10-year loan for the CMBS market, the first deal of its type for the local office. DSL Partners Ltd. bought the mix of one- and two-bedroom complex at 5901 Sam Calloway about five years ago.
"This was a value-add. They turned it around," Bushe tells GlobeSt.com, "and got it up to 90% occupancy." Second Dimension, built in 1974 on 7.88 acres near Carswell AFB, is an all-bills paid complex with rents now averaging $1.02 per sf for units averaging 500 sf.
"They want to buy something else," Bushe adds. "That's the reason for the refinance. They're going to pull their equity out and put it somewhere else." The search is on to find an asset in North Texas, San Antonio or Houston.
Bushe says La Jolla Bank didn't offer non-recourse, fixed-rate loans, but he has had a lot of requests from investors so a CMBS program has been put into play. "This allows us to serve all of our customers' loans," he says.
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