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FORT WORTH-A San Mateo, CA investment group, turning around 1031 exchange funds, has set up back-to-back plays to acquire a pair of retail properties in North Texas. One acquisition has closed and the other will follow suit in mid-November.

Seaside Quest LLC, a Vietnamese investment group, has laid out more than $1.2 million for a 13,100-sf center at 1701-12 Bethel Rd. in Weatherford, county seat for Parker County, and has inked a contract to spend another $2 million for the 73,000-sf Lake June Shopping Center at 11903 Lake June Rd. in Dallas County’s Balch Springs, Bill Jackson with Commercial Mortgage Connection in Fort Worth, tells GlobeSt.com. Renovations, he adds, will be covered by the investment group, which is reinvesting gain from residential sales in its homeport.

Jackson arranged a $911,250 loan through a New York City bank for the Weatherford property, which the investment group picked up by buying the contract from WB Ventures Inc. of Richardson. The 10-year loan, with a 25-year amortization, has a fixed-rate interest of 6.3%, he says.

Seller Weatherford Properties turned over a fully leased asset with a mix of mom-and-pop tenants, except for one–the anchor, which is a Sherwin-Williams paint store. The seller was represented by Dick Myers III with the RD Minker Co. in Fort Worth. Doug Wilder and Bob Robbins, both with Quine & Associates of Richardson, acted on the buyer’s behalf. Pat Martin of First American Title Insurance Co. of Weatherford handled the closing.

Lake June Center, positioned on 5.4 acres, is 52% leased. “It’s truly a value-add property,” Jackson says. Seaside intends to jump into a renovation as soon as the deal crosses the closing table, he says. Seaside is buying the holding from the Michael Group of Dallas in a deal being brokered by Henry S. Miller Commercial, also from Dallas.

Jackson has lined up a $1.3-million package with a 68% loan-to-value ratio, three-year term, 20-year amortization and 7.75% fixed-rate interest through Summit Bank of Fort Worth. He says the trick to the financing was using a local lender who understood the dynamics of the deal. “I had to get somebody who could get past the occupancy,” he explains. “The numbers cover the debt service of the loan.” And when the repositioning is done, he says Seaside plans to refinance at a lower interest rate and pull out some equity to refuel the till.

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