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HOUSTON-A California partnership has obtained $5.32 million in a refinance to help knock down the interest rate of a loan obtained five years ago for the acquisition of Prosperity Bank Plaza, a 92,491-sf, three-story, suburban office complex.

John Fenoglio, principal with Houston-based Live Oak Capital Ltd., arranged the loan with John Hancock Life Insurance Co. of Boston. He declined to release the terms of the initial acquisition loan, but he tells GlobeSt.com that “the owner has shaved a net percentage off his previous loan. It was substantially much higher.” The owner of record for 4295-4299 San Felipe Dr. is 4295/4299 San Felipe Associates LP from Southern California.

Fenoglio says the new package has a fixed-rate interest of 5.73% at a six-year term, with a 30-year amortization and a loan-to-value ratio hovering 75%. He adds that, while the loan wasn’t difficult to place, it didn’t qualify for CMBS execution due to prepayment flexibility that was built into the terms. “We were trying to avoid defeasance so we tried to restructure this as a fixed prepayment option for him,” he explains.

Fenoglio helped to finance another local building for the owners a few years back. “They have an expensive portfolio,” he notes, “but no more financing imminent at this time.”

Prosperity Bank Plaza is 95% occupied. Besides the bank, its tenant roster includes Service Employees International Union, Inpatient Medical Services, Ziff Energy Group, Mills Law Firm, Alamo Title Co. and Gateway Design.

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