The new vehicle replaces a JPMorgan Chase-funded constructionloan with a spring 2005 maturity, Carleton Riser, Hines' seniorproject manager, tells GlobeSt.com. The New York City-basedJPMorgan package had extension options, but Hines elected to seekpermanent financing earlier than usual due to the low interestrates now prevailing in the capital markets, Riser explains.

Riser says the loan took about 90 days to close. The deal wasshown to a large group of lenders and the field narrowed to four,Riser says. The Charlotte, NC-based Bank of America cleared a10-year loan with a 30-year amortization. The interest rate andloan-to-value ratio are not being released for the 33-story towerat 717 Texas Ave., but Riser did say the loan is moderatelyleveraged, in keeping with Hines' debt capitalization strategies ofthe past. Tom Melody, executive managing director withHouston-based LJ Melody & Co., arranged the financing.

The building's lead tenants are Calpine Corp., BurlingtonResources and Jones, Day & Pogue. Calpine has a 10-year leasefor 300,000 sf. The energy firm has put the 29th floor, with 27,764sf, on the sublease market. Burlington Resources, also holding a10-year lease, occupies 250,000 sf while the law firm of Jones, Day& Pogue is committed to 54,600 sf for the next decade, saysRiser.