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DALLAS-A Dallas-Fort Worth retail owner has secured $8.5 million in permanent financing for a 185,000-sf center in San Marcos after buying the asset in January with a loan assumption and then pushing ahead on a new financing package to save on the bottom line via lower interest rates.

Todd McNeill, senior director of Dallas-based Metropolitan Capital Advisors, tells GlobeSt.com that the interest rate on the assumed loan was “north of 8%” and the new financing, obtained from Bear Stearns in New York City, is locked in at 5.8%.

Additionally, the amortization went from about 24 years to 30 years for a 10-year, non-recourse loan that retired the $8-million loan assumption. The loan-to-value ratio went to 75% from 70% plus the deal was structured with a $400,000 escrow account for tenant improvements and lease commissions instead of rolling in an extra assessment on the payment tab, McNeill explains of the deal put together for the borrower of record, Trinity San Mar Ltd.

The 97%-occupied San Mar Plaza, built in 1984, is positioned at one of the top “go to” intersections in town, a positioning that drove a backfill of the center in 1998 before Wal-Mart and a cinema could turn out the lights for newer locations and Kroger could exit the market. The retail space is considered such a premium, McNeill says, that two of four anchor tenants, Hobby Lobby and Dollar General, grabbed Factory 2-U’s just-vacated space as the new financial package was being built. Located at the northeast corner of Interstate 35 and Texas 80, the center’s roster includes Hastings and Tractor Supply, both anchors, and Eckerd, Rent-a-Center, Payless Shoe Source, Verizon Wireless, H&R Block, Sally Beauty. CitiFinancial and Supercuts.

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