Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

HOUSTON-An investment company from Los Angeles has obtained a $7-million bridge loan to help with renovations and leasing of the 128,405-sf Ashford on the Bayou, a five-story office building in Westchase.

RPD Catalyst LLC initially purchased the property at 1001 Dairy Ashford Rd. from a limited partnership led by Prudential Real Estate Investors of Parsippany, NJ. The new owner will use the funds for capital improvements to help boost the current occupancy rate of 44%.

“We had several lenders for this property because it made sense,” says David Aaronson, a principal with Houston-based Live Oak Ltd., which helped to secure the loan for RPD through the Boston-based NewStar Financial Inc. “The equity that the buyers put in was reasonable. The lenders’ risk for what they were being asked to take was reasonable and we have an experienced sponsorship that has a good game plan to get the project updated and leased.”

Aaronson tells GlobeSt.com that renovations on the structure should be complete within 120 days. Part of the changes have included the addition of Michael Martin with local firm, PM Realty Group, to manage and lease the class B space. The PREI partnership bought the 20-year-old building, sitting on 2.5 acres, in 1999. Danny Miller in CB Richard Ellis Inc.’s Houston office brokered the sale.

The lead tenant is Allied Waste, which just signed a lease for 25,000 sf. Aaronson adds that because much of the building contains smaller tenants, “there shouldn’t be a significant roll over the next couple of years.”

Aaronson says the holdback on the deal is a strong one. “There’s plenty of money in the loan to fund renovation and tenant improvement as well as leasing commissions,” he says.

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?


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.