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.

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