Stephen Hagerman, assistant vice president of Newport Beach, CA-based Buchanan Street Partners, says the 6.36-acre site along Stone Oak Parkway near Loop 1604 will have five class A office buildings and two retail structures. The mix breaks out to about 15% retail and 85% office. Hagerman and Buchanan senior managing director Thomas Sherlock arranged financing.
Sherlock tells GlobeSt.com that it wasn't too difficult to arrange project financing because of its location in northwest submarket and sponsorship. "The area has good fundamentals," he adds. The fact that MS Walker is doing its own design and construction didn't hurt matters either, according to Sherlock. "That was part of the sponsor's efficiency and why the overall deal had merit," he says.
Amegy Bank in Houston provided a 24-month construction loan with a Libor-based interest rate with a 250 basis point spread. The loan to cost is 75%. MS Walker kicked in part of the equity and picked up $3.8 million from Ascent Real Estate Advisors LLC of Greenwich, CT.
As MS Walker prepares to break ground on Stone Oak Centre, the developer is looking for more development opportunities. "They've recently opened an office in Austin," Hagerman points out, "and they're looking at a number of other sites throughout the state."
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