All three centers, built in the mid-1980s, have been owned for nearly one decade by a private investor from Houston. Matthew Franke, vice president of Q10 Kinghorn Driver, Hough & Co. in Houston says the owner's track record and the portfolio's 94% occupancy brought proposals from many lenders.
"We definitely had lenders that wanted to get involved with this project, based on the strength of the borrower and the strength of the properties themselves," says Franke, who arranged financing through Prudential Mortgage Capital Co.'s McLean, VA office. The five-year loan carried a sub-5.5% fixed-rate interest. Franke says the loan closed about 60 days after the application was signed.
Franke tells GlobeSt.com that Prudential Mortgage was the lender of choice because of its ability to close quickly and its terms. "It's a difficult economic climate among lenders in general. We wanted this to be as smooth as possible," he adds.
The assets are leased to regional and credit-name tenants like Bed, Bath & Beyond, Conn's and Bally's Total Fitness. Franke says there is no immediate or major lease roll and no renovations are planned. "The three centers are very well maintained," he says. "This was just replacing maturing debt that the borrower had gotten many years ago."
The portfolio consists of the 101,000-sf Nottingham Plaza at Interstate 10 and Fry Road in Katy and 88,000-sf Town & Country Shopping Center at Interstate 10 and West Sam Houston Parkway in Houston. The third center is the 122,000-sf Township Plaza at Texas 59 and FM 1960 in Humble.
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