Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]DALLAS-With the hole now dug, Gables Residential has its construction capital in hand to advance work on its 21-story residential tower for the $200-million 1717 McKinney mixed use. The co-developer of the Uptown site has secured a three-year, floating rate loan from Wachovia and Compass banks.

Gables and Dallas-based Granite Properties have been prepping the 2.2-acre site at 1717 McKinney Ave since April. Gables’ plan calls for 292 rental units on 20 floors atop 14,000 sf of retail while Granite’s stake will be a 361,524-sf, 19-story office building. The towers, with LEED certification as part of the plan, will be linked by a six-level parking garage and shared amenity deck. The developers are eyeing delivery in April, possibly May, 2010.

David Reece, senior vice president of finance and capital markets for the Atlanta-based Gables, tells GlobeSt.com that Charlotte, NC-based Wachovia is the lead lender, with Birmingham, AL-headquartered Compass Bank in a participating role. “Most banks today don’t want to keep more than $30 million on their books,” he explains about the motivation for the split. Teams in Atlanta and Houston for Wachovia and Compass, respectively, arranged the financing.

[IMGCAP(2)]Reece says the financing package, which is Libor-based and has “a couple” extension options, took “three or four months” to pull together. “It took a little bit longer because we had to participate it,” he says, adding the shared amenity deck also complicated the deal-making process. Wachovia was seated first and then he brought Compass Bank to the table.

“Both Wachovia and Compass are familiar with the market and know the location,” Reece says. “They recognize the location is a very good one.” The two towers will sit at the kissing point of McKinney Avenue, Cedar Springs Road and North Akard Street.

Gables, like others, still had to battle the capital markets’ turmoil to win financing despite its financial muscle. “Generally, it was more difficult given the constraints of the capital markets,” Reece says. “We had other loans from both banks so it was a good fit. It wasn’t much longer than normal.”

Gables’ tower will have 181 one-bedroom units, averaging 920 sf; 105 two-bedroom units, averaging 1,370 sf; and six three-bedroom units, averaging 2,500 sf. Because it’s so early in the development, the projected rents have yet to be set. The amenity deck will boast a 4,000-sf fitness center and outdoor pool.

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

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


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 © 2020 ALM Media Properties, LLC. All Rights Reserved.