HOUSTON, May 14, 2013 – Marcus & Millichap Capital Corporation (MMCC) has arranged the $16.4 million refinance of a 125,000-square foot medical office building in Houston.
Peter Dunn, a senior director in MMCC’s Houston office, arranged the loan.
“The property was severely damaged by Hurricane Ike in 2008 and then completely abandoned,” says Dunn. “The borrower purchased the property in March 2012 with the intent of completely rehabilitating it and converting it to a medical office building.”
“The client, an experienced general contractor who had recently expanded his skill set and was acting as both the contractor and developer of the project, requested a traditional construction loan with maximum leverage on a nonrecourse basis,” says Dunn. “We were able to secure a nonrecourse bridge loan at a floating rate of 9.56 percent with an 80 percent LTV that will convert to a permanent, 10-year, fixed-rate CMBS loan at stabilization.”
“This asset came with an unusual set of circumstances that required a specialized loan structure,” adds Dunn. “We sourced a lender that that was able to handle this type of ‘all-in-one’ loan and worked to make sure that our client understood the underwriting every step of the way.”
“Houston’s strong economy supports retrofitting opportunities across all product types,” concludes Dunn. “Bridge lending will continue here for at least the near-to-short term.”
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE
Comments are closed, but trackbacks and pingbacks are open.