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HOUSTON-A local developer has secured nearly $2.4 million to retire construction financing for a 14,100-sf retail building on an out-parcel to a grocery-anchored shopping center.

The Jenkins Organization Inc. got a 10-year loan, with a 65% LTV and a sub-6% fixed-rate interest from the Stamford, CT-based GE Real Estate, Wallace C. Reid, managing director in Houston for Holliday Fenoglio Fowler LP, tells GlobeSt.com. The fully leased Beechnut Shopping Center, located near Beechnut Street and Kirkwood Avenue in the southwest submarket, has Blockbuster Video as the anchor with 6,000 sf. Other tenants are Voice Stream, Ace Cash Express, Belle Nails and Texas Smiles. The two-year-old center, with a quoted rent of $23 per sf, abuts an H-E-B-anchored retail plaza.

Reid, the loan originator, says the new financing retired a construction loan with the International Bank of Commerce in Houston. The loan, with a 30-year amortization, carries a low debt service coverage, he adds.

Beechnut Shopping Center sits in a retail and multifamily corridor. “It is a prime location,” he says. “This is turning into an in-fill area. We believe this will make the rates go up.”

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