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ARLINGTON, TX-Windstar Land Partners III has secured $4.1 million in financing through American United Life. The strategy is to leverage five long-term ground leases to secure capital for other commercial real estate forays, Joe Hevey, senior director for Holliday Fenoglio Fowler LP in Dallas, tells GlobeSt.com.

“It was difficult in that it was a non-traditional product,” Hevey says of the package mortared by restaurant ground leases at Highlands Shopping Center in South Arlington. The retail pad sites are leased to Salt Grass Steakhouse, Abuelo’s Mexican Embassy, Texana Grill, Taco Bell and Tony Roma’s in the Highlands Shopping Center. Each restaurateur owns its building, but Windstar opted to hold onto the 6.8 acres of pad sites because of their strategic location along Interstate 20.

The 10-year loan carries an interest rate in the mid-7% and a shorter term amortization than the norm of 20 to 25 years, Hevey says. Precise numbers are being kept under wraps at the request of lender and borrower.

The center has been steadily developing for several years. It contains a Lowe’s, estimated at 135,0000 sf, 25,000-sf Golfsmith and 25,000-sf strip center. Sometime back, Windstar sold a tract to La Quinta, which has erected a hotel on its land. But it’s the project’s newcomer that has the area talking: a 30,000-sf Ultimate Electronics. The store is to open in summer 2002.

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