Yearly Archives: 2018

CLOSED: Town Center Plaza

Q10 KDH Vice President Emily Zarcaro provided refinancing in the amount of $7,500,000 with Silverpeak Argentic for a Class A office building located in The Woodlands, TX. The transaction closed with a 10 year term, 30 year amortization, and a 4.92% interest rate.

Emily Zarcaro stated, “Our borrower was seeking to refinance a maturing life company loan as well as pull over $3,500,000 out of the property in order to pursue other investments. Additionally, the property is currently 82% occupied due to vacant space being held for a potential expansion by the anchor tenant. We were able to achieve the cash out request through CMBS execution with minimal reserves and limited cash management provisions. Without previous CMBS borrowing experience, leasing and cash flow restrictions were among the clients’ biggest concerns. Silverpeak Argentic did an outstanding job of making the structure look like a life company loan as much as possible.”

Fannie Mae Green Loan

Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger provided a cash out refinance for a multifamily property in a secondary market of Texas. The borrower was looking to  continue to hold their asset for at least 15 years and they received a 15 year term, full interest only and returned cash to the partners.

Larry Peters stated, “The borrower received an approximate discount of 33 basis points in their interest rate for agreeing to implement water saving devices. That will save $1 million in interest over the life of the loan. Coupled with the interest only component over 15 years and the water saving cost, the borrower reduced their loan payment while putting $3 million in their pocket and still own the asset.”

Q10 KDH Arranges Two Refinancings Totaling $44.5M for Houston-Area Retail, Multifamily Assets

HOUSTON — Q10 Kinghorn, Driver, Hough & Co. (Q10 KDH) has arranged two refinancings totaling $44.5 million in the Houston area. In the first transaction, Larry Peters of Q10 KDH arranged $29 million for two undisclosed multifamily assets totaling 642 units. These deals included a 15-year interest-only loan for the first property and a floating-rate loan for the second property. In the second transaction, Buddy Hopson of Q10 KDH placed a $15.5 million loan through a regional bank for the refinancing of Ravenswood Village Shopping Center, a 121,694-square-foot retail center in Huntsville. Additional terms of the transactions were not disclosed.

CLOSED: Self-Storage 15 year term loan

Q10 KDH Vice President Dave Holland arranged a cash-out refinance with a correspondent life insurance company lender for a self-storage property in Houston, TX. The non-recourse loan provided 70% loan to value and had a 15 year term. Dave Holland stated, “The borrower had almost paid off a fully amortizing 15 year note and wanted to recapitalize so he could buy out a partner. This non-recourse small loan program was a perfect fit for this long term owner since he was able to lock the interest rate for 15 years near 5%.

 

CLOSED: Acquisition Financing for Retail Buildings in San Antonio, TX

Q10 KDH Vice Presidents Emily Zarcaro and Matt Franke provided acquisition financing with our lender, a Fortune 100 commercial bank, for two retail buildings located in San Antonio, TX. The transaction closed with a 10 year term, 30 year amortization and a 4.70% interest rate.

Emily Zarcaro shared, “Our borrower is a private REIT who was seeking a long term fixed rate loan with substantial prepayment flexibility. We were able to achieve this on a non-recourse basis with our lender who worked quickly to meet the acquisition timeline. The higher LTV is a testament to the strength of the REIT and its manager, a Houston-based retail developer whom KDH has enjoyed a long relationship with.”

Big Box Retail Cash Out Refinance

Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger provided a cash out refinance with a correspondent bank for a 100,000+ sq ft big box retail center. The loan closed with a fixed interest rate.

This repeat Q10 KDH borrower was looking to reduce their personal recourse and return capital to their partners. They also requested flexible prepayment and needed to close by a certain date. Larry Peters stated, “We are fortunate to have a great relationship with this borrower. Familiarity with their legal team and management company made meeting our short closing time possible. Without the first hand knowledge of the borrower and lender, this deal could not have closed in time.”

Permanent Acquisition Financing for Retail Center

Q10 KDH Vice President Ryan Watson provided permanent acquisition financing with our correspondent Securian Financial Group formerly Advantus/Minnesota Life for a retail space located in Houston, TX. The transaction closed with a 10/25 term and a 4.75% interest rate. The property has been a long-standing fixture in the community which the Sponsor recognized. Many of the tenants have been in place for over 20 years offering stability in the current retail market.

Fast Closing and Cash Out for Multifamily Property

Q10 KDH Principal Gary Hough and Vice President Matt Franke provided permanent fixed rate financing with our correspondent lender for a multifamily property located in the Greater Houston Area. The transaction closed with a 10 year term and a 4.04% interest rate for a loan amount of $10,750,000. This property was a refinance of a property KDH financed 10 years ago with another correspondent insurance company.

After taking this loan request to the market, our correspondent lender ultimately offered the best overall terms that most closely aligned with the borrower’s objectives. The loan process was very smooth and resulted in a closing only 33 days from application execution.

The refinance resulted in a 200 basis point reduction in the coupon rate while providing the sponsor with a very significant “cash-out”. KDH has enjoyed a relationship with this borrower for over 20 years.

Low Rate Apartment Financing

The team of Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger provided a fixed rate life company loan from our correspondent RiverSource for an apartment community in Houston, TX.

The 10 year, fixed rate loan had a 4.0% interest rate that was locked at application, providing the borrower peace of mind during the recent interest rate market volatility. “Life companies are very competitive with Fannie Mae and Freddie Mac on lower leveraged loans such as these. These agencies could not come close to the low interest rate, provide an early rate lock, or match the low closing costs and minimal servicing requirements of the life company lender.”- Adam Unger

Fixed-Rate Financing for Houston Learning Center

Q10 KDH Vice President, Melissa Mayer provided fixed rate financing for Learning Experience in southwest Houston, TX. The loan provided the KDH client with $2,640,000 in acquisition financing at a rate of 4.5%. The transaction closed with a 10 year term and 25 years of amortization.