The New York City-headquartered Teachers Insurance & AnnuityAssociation and Stamford, CT's GMAC Commercial Mortgage Corp.bested 10 lenders vying for the hospital project. A pair ofHolliday Fenoglio Fowler LP senior managing directors in Houston,Greg Pappas and Scott Galloway, arranged the financing.

Pappas tells GlobeSt.com that the package consists of a 30-monthconstruction period and an immediate roll to a 15-year financing,both at a sub-7% fixed-rate interest. A small portion of theconstruction capital has a Libor-based floating rate, he adds.

"Although it has fairly high leverage, fairly low leasing, thequality of the site and sponsorship got lenders comfortable andexcited about the deal," Pappas says. The Houston-based MischerHealthcare Services LLC is handling pre-leasing for office andretail components, co-developing the 28-story building withMemorial Hermann Healthcare System. Aside from the state-of-the-artmedical facilities, the project includes a 2,400-space parkinggarage with a skywalk into the Memorial Hermann Hospital.