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DALLAS-Charter Holdings LP has secured $14.6 million to retire financing used to redo and reposition the 62,233-sf Kingsley Square in East Dallas during the past three years. The 92%-leased shopping center is collateralizing a five-year loan with interest-only payments at a sub-6.5% fixed rate.

The marquee of the 7.24-acre property at 7201-15 Skillman Ave. tells the story, with signs showing a new lineup anchored by LA Fitness and an old mainstay, Mi Cocina. Lance Wright, regional director in Dallas for Norwalk, CT-based GE Capital Real Estate, says the Dallas-based borrower had just one hurdle to clear before the loan could be stamped. “We were really tied to the LA Fitness opening,” he tells GlobeSt.com. The 45,000-sf health club opened in recent months, setting the process in motion for the loan to advance after sitting on the backburner until LA Fitness went live.

Wright says Charter Holdings’ president and CEO Ray Washburne is part of a group of local investors who own the Mi Cocina flag. The Kingsley Square location in Lake Highlands was one of its best so Charter stepped up to buy the real estate when the center fell into a slump in 2004, according to Wright. In taking over, he says Charter moved the restaurant into 4,934 sf of inline space, ground-leased its pad to Woonsocket, RI-based CVS/Caremark Corp. for a 13,085-sf drug store and opened up enough inline for UK-headquartered LA Fitness plc. to move in as the anchor.

“It’s a great deal all the way around,” Wright says. “You have a lot of traffic generators and an area that’s an infill and undergoing revitalization.” Charter Holdings had John Brownlee with Holliday Fenoglio Fowler LP in Dallas arranged the GE-funded replacement loan for the mix of new and redeveloped space.

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