X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DESOTO, TX-Options Real Estate Investments Inc. has secured $3.5 million in a permanent, fixed-rate interest vehicle to replace a short-term bank note for the 68,000-sf Inwood Bank Building in Desoto.

The financing is a non-recourse mortgage with a 6.5% interest rate funded by Omni American Credit Union in Fort Worth, Todd McNeill, senior director of Metropolitan Capital Advisors in Dallas, tells GlobeSt.com. He says the loan supported a dissolution of a single-asset partnership and rolled full title to the Dallas-based Options Real Estate, which leased and managed the 98%-occupied building at 1801 N. Hampton Road since 1995. The 10-year loan, with a 75% loan-to-value ratio, replaced a bank-financed seller’s note held since 1992 when Options bought out its joint venture partner in class B-plus, 20-year-old office building, according to McNeill.

The biggest obstacle in getting a signed deal was lenders’ views about the office market on the Dallas side of the metroplex. “The perception of the Dallas office market was a challenge to get over,” McNeill says, “and to compound that the perception about the South Dallas market.” The Inwood Bank Building is the largest office product in Desoto so there was “nothing for comparison in the market,” he explains.

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.