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HOUSTON-Investment Properties of America LLC has secured $86 million of permanent financing for West Oaks Mall, taking the step about nine months after it purchased the 423,829-sf inline component to the 1.1-million-sf mall. The Richmond, VA-based owner, operating as IPofA West Oaks Mall LP, will use the new capital to pay off a floating-rate note taken out for the purchase.

“They’d had a short period of time to close the deal and needed short-term financing to do it,” says G. Paul Stasaitis, managing director with Holliday Fenoglio Fowler LP’s Miami office. He says the owner now needed “long-term permanent financing at a fixed rate” for the 14700 Westheimer Rd. property.

Conduit lender Greenwich Capital Markets Inc. of Washington, DC provided a seven-year, securitized loan with a 7.44% fixed-rate interest. Stasaitis, who teamed with HFF’s Todd Adams to close the transaction, says the borrower got 80% loan-to-value financing.

Stasaitis tells GlobeSt.com that the loan itself wasn’t difficult to place, but it did involve some paperwork because the borrower’s company was similar to a TIC set-up, offering investments through a 1031 replacement property program. “There was some legal work necessary to ensure the lender got what was needed and the borrower got what was needed for the investors,” he adds.

Stasaitis praised West Oaks Malls, however, noting that the prior owner Somera Capital Management of San Francisco had spent upwards of $10 million to renovate the vintage center. And, he adds, the current owner has a strong staff for continued sound management and leasing.

Stasaitis says lenders also were impressed with the center’s 92% occupancy. “The lease roll was moderate with no major anchor rolls any time soon,” he says. “It was all spread out nicely so we didn’t have to work around it.”

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