Q10 KDH Vice President Larry Peters and Senior Associate Adam Unger arranged permanent debt for a 42,000 SF industrial park in Katy, TX. Larry and Adam worked on behalf of the borrow to secure a 10-year, fixed-rate loan. The 100% leased property was built in 2017.
“With the increasing costs of construction, developers are finding it difficult to pay off construction debt and pull equity out of a transaction,” Larry said. “We secured a loan that was able to pay off the construction lender at stabilization and put some of the borrower’s equity back in their pocket. The quality of construction, strength of the rent roll, and strong market fundamentals helped solidify the deal. Our repeat borrower saw the value of working with an experienced KDH debt team who negotiated a 10-year-term loan with limited recourse and no prepayment penalty.”