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STAFFORD, TX-The Midway Cos. of Houston has secured a 10-year permanent financing, with a 25-year amortization, based on a single-tenant, net lease with a 10-year term.

James S. Adams, senior vice president for Houston-based Kinghorn Driver Hough & Co., tells GlobeSt.com that the loan terms weren’t easy to achieve because most lenders were only willing to amortize for 15 years on a 10-year lease. Midway’s permanent financing package was placed with State Farm Life Insurance Co. of Bloomington, IL, and replaces a construction loan with Wells Fargo. The loan amount isn’t being made public, but it’s likely to be close to the $4-million assessment levied by the Fort Bend County Appraisal District.

The loan’s collateral is a 137,497-sf office/warehouse on 9.9 acres at 13127 Trinity Dr. in the Freeport Southwest Business Park in Stafford, southwest of Houston. The tenant is Alpha Shirt Co., a Philadelphia-based manufacturer that set up shop in the building in January after wrapping up a major expansion to a 74,000-sf building it assumed with the takeover of Kay’s Enterprises.

In a press release, Adams says State Farm “provided a full 75% of value loan with a 25-year amortization, even though the tenant’s lease term was only 10 years.” He credits the decision to State Farm’s ability to recognize a mortgage as “a real estate deal and not just a single tenant transaction.”

Midway’s Freeport Southwest Business Park is a 235-acre development at US Highway 90 and FM 1092. The park is classified as tax-free zone for temporary inventory warehousing. Alpha Shirt’s product line consists of T-shirts, golf shirts, fleece jackets, bags and caps under labels such as Columbia Sportswear, Champion Hanes, Lee, Perry Ellis, Antigua, Jerzees and Outer Banks.

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