X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Koger Equity Inc. of Boca Raton, FL beats the calendar’s turn, as it said it would, to close the $102-million purchase of the 1.2-million-sf Lakes on Post Oak in Houston. The REIT now is readying plans for a $12-million renovation of the three-building, class A holding.

Thomas Crocker, Koger’s CEO, said in a prepared statement that the renovation will be followed “by an aggressive marketing and leasing program driven by our competitively low basis.” The upgrades to the 75%-occupied complex will be done by the end of next year, according to Crocker.

Koger structured the deal with $77 million of five-year, project-level, non-recourse debt. The debt carries a floating interest rate equal to 287 basis points over LIBOR, with a two-year LIBOR cap of 5.45%. Koger drew down a revolving line of credit for the $35-million balance and set up a $10-million escrow for tenant improvements, leasing commissions and deferred maintenance.

Koger said the plan is to reimburse the credit line by refinancing the 803,160-sf Three Ravina in Atlanta. The office property, owned by a Koger affiliate, was acquired through a revolving credit line that will be replaced with an $85-million, five-year, non-recourse mortgage at a fixed 5.26% interest rate.

Koger acquired 3040 Post Oak Blvd. from Nippon Life and 3000 and 3050 Post Oak Blvd. from Dallas-based Cottonwood Partners. Hines Interests developed the 28-acre project between 1979 and 1981. For previous story, click here.

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?

Dig Deeper

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.