(Read more on the debt and equity markets)and the industrial market.)

HOUSTON-A private partnership from Oklahoma City has refilled its till with $28.9 million in a refinance of a 377,750-sf build-to-suit that it bought shortly after completion. The 10-year financing has a 75% loan to value.

The flex building, situated on five acres at 5100 N. Sam Houston Pkwy., is net leased for 15 years to National Oilwell Varco. A spokesman in NorthMarq Capital Inc.’s Houston office says the new owner acquired the building with 1031 exchange money and interim debt. He says the new capital will be used to pay down the bridge loan.

John Burke, senior vice president and managing director for NorthMarq’s Houston office, arranged financing through American National Insurance Co. of Galveston, TX. Terms include a sub-6.5% fixed-rate interest and 26-year amortization, according to a NorthMarq press release.

The spokesman tells GlobeSt.com that the asset attracted interest from lenders because it is new, has a credit-grade, long-term tenant and is in a good location. The northwest submarket historically experiences high demand for industrial and flex space, keeping vacancies in the single digits.

Still, the spokesman says placing the loan had challenges because it was constructed for a specific company rather than being a generic warehouse or flex space. “This was an expensive, state-of-the-art, highly improved warehouse building,” he says. “A lot of lenders prefer multi-tenant space.”

InSite Realty Partners LP in Houston built it and sold it immediately to the Oklahoma City partnership. “When they purchased it, the tenant was moving in,” the spokesman explains. “This was a relocation of five operating divisions for National Oilwell Varco.”

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

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.