X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

IRVING, TX-Cross Timbers Capital of Dallas shifts a $12.4-million balance on a construction loan to a permanent mortgage for a 93%-occupied office building in Las Colinas.

“The toughest part was that it’s in La Colinas, a submarket with a 26% vacancy rate,” Brad Donnell, senior director for Dallas-based Metropolitan Capital Advisors, tells GlobeSt.com. The lenders’ appraisers needed some convincing that buildings such as Hackberry View at 2201 W. Royal Lane aren’t the culprits for the high vacancy. A closer assessment showed the building’s 7% vacancy falls right where it should when stacked up against comparable multi-tenant, class A neighbors, according to Donnell.

The added review, however, delayed the loan closing, which got under way in April and just now garnered final signatures from lender JPMorgan, according to Donnell. Cross Timbers’ loan carries a 10-year term with 30-year amortization and 7.1% interest. Donnell admits the rate falls on the high end of today’s scale, but confides that the lender refused to budge on the fixed rate for an 80% LTV that was agreed to four months ago when the loan application was made. The construction loan was to expire this year, Donnell says.

Cross Timbers developed the 114,537-sf Hackberry Lane in 2000. Stream Realty Partners holds the leasing and management contracts.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.