HOUSTON-Capitalizing on the success of their three-year-old co-investment, Moody Rambin Interests and American National Insurance Co. of Galveston, TX are preparing to add 86,000 sf of office and retail space to the 407,000-sf Town and Country Village. The partnership has obtained a $25-million construction loan to expand the 98%-filled asset.

The expansion is scheduled to be done before the 2007 holiday shopping season. The owners are adding 45,000 sf of office space and 41,000 sf of retail space around a four-story parking garage. The 40-year-old Town and Country Village at 12850 Memorial Dr. was renovated in 1996.

“The center has done extremely well for them historically and it’s adjacent to the old Town & County Mall that’s being developed into the CityCentre,” says Dave Kocourek, senior portfolio manager with Chicago’s Allstate Real Estate Investment Group, which financed the project. He tells GlobeSt.com that Moody Rambin and locally based Midway Cos., which is developing the 1.1-million-sf CityCentre, are trying to create synergy between the two assets, which is one reason for Town and Country Village’s expansion. “Moody Rambin is looking to capitalize on what’s going on adjacent to this,” he adds.

Allstate also funded Moody Rambin’s acquisition of Town and Country Village in 2004. Kocourek says the construction financing, which has a fixed rate, will run co-terminus with the $55-million, 10-year acquisition loan.

“The initial loan was conservative,” Kocourek says. “But the cash flow from the property right now is so strong, it’s more than adequate to cover us. We saw this second loan as a good opportunity to accommodate a valued borrower with a property that’s doing very well.” Tom Melody and Tracy Kennedy from CBRE/Melody’s Houston office arranged financing for the local developer.

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
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

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 © 2024 ALM Global, LLC. All Rights Reserved.