N3 Capital Lands $12M for Office Project

FORT WORTH-An affiliate of locally based N3 Capital has landed a $12-million loan from NewStar Financial Inc. of Boston to acquire the 113,000-sf Tindall Square project and convert a building at the property to additional office space. N3 plans to move its headquarters to the five-building office property, for which it plans an aggressive marketing campaign to lease the space.

In addition to aggressively marketing the available space for lease, N3 plans on converting one building which is currently used for record storage into office space and leasing the property to stabilization. The Tindall Square property originally served as a storage and factory space for the Ellison Furniture Co. in the early 1900s. Today, the project forms a small historic district on the east side of Downtown Fort Worth.

In the early 1990s, four of the five Tindall Square buildings were renovated to serve as multi-tenant office space with immediate access to Downtown. The owners market the space as a viable alternative to costlier Downtown office space while still providing a CBD location.

The NewStar loan provides acquisition financing and additional capital for future interest carry, capital improvements and the costs of leasing the property. The loan was structured with a three-year term and two one-year extension options to allow sufficient time to market the available space to new tenants and complete the building conversion.

In addition, the loan provides a short-term lockout period with no subsequent prepayment penalty to allow N3 to refinance the property upon stabilization. The NewStar transaction team included Tristan Pierce, Don Davis, Zibby Shiver, Erica Salkow, and Evan Turner.

N3's advisers on the transaction were Kevin Mackenzie and Travis Anderson of the Dallas office of Holliday Fenoglio Fowler. HFF will service the loan on behalf of NewStar.