SAN ANTONIO-The owner of rehabbed and re-tenanted Heritage Square II shopping center has refinanced the center with a $4.7-million loan. It was arranged by Houston-based Kinghorn, Driver, Hough & Co. through GE Capital Real Estate.
The loan has a 10-year term and amortizes over 25 years. It has an interest rate of about 10%. New York-based Leon Realty LLC is the owner of the 76,200-sf center.
Jim Adams, the Kinghorn senior vice president who structured the loan, tells GlobeSt.com that the shopping center had a 40% occupancy rate when Leon Realty bought it about a year ago. It maintained that level even though the anchor tenant, an H-E-B grocery, had moved to a new, free-standing building across the street several years ago. “It’s kind of unique when you have a center that has a dark anchor and the balance is full,” Adams says.
The owners filled the 42,000-sf former H-E-B space by splitting it among three stores, Factory-2-U, Dollar Tree and Fashion Image. The center is now 100% leased, according to Adams.