Emily Zarcaro, Vice President at Q10 KDH, arranged $26.1 million in non-recourse financing with Silverpeak Argentic for a portfolio of single-tenant office buildings located across Texas. Emily worked on behalf of the borrower to secure a 10-year, fixed-rate loan with 5 years of interest only payments.
“This loan was interesting because of so many unique components and moving parts,” Emily said. “Our borrower sponsor is a foreign national with extensive experience overseas in commercial real estate. In conjunction with a local partner, our borrower team is building an investment portfolio in the U.S. We were happy to secure debt that financed the acquisition of several State of Texas-occupied buildings while simultaneously refinancing three other properties that were previously owned in cash. Silverpeak Argentic closed in a timely manner, and I look forward to working with both sides of this transaction again.”
Q10 KDH Vice President Matt Franke and Associate Michael Borden provided acquisition financing with a regional bank for a retail property in College Station, TX. The transaction closed with a 5 year term. Michael Borden stated, “With the cooperation of the bank, we were able to get from signed application to closing in 37 days to meet the borrower’s deadline.”
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.”
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.”
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.
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.”
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.”
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.
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
Q10 KDH Vice President, Larry Peters arranged Fannie Mae DUS financing for a multifamily property located in Houston, Texas.
The financing provided our client two years of interest only and a floating rate with flexible prepayment. The asset received a seven-year term and a low interest rate in the mid 3% range.
“The asset was located outside the Houston MSA and many lenders were more conservative due to the location. Our job is to educate the lender and show them the value of looking at the opportunity from a perspective that others don’t. We were able to accomplish the borrower’s wishes by delivering a higher LTV than what the majority of the market was comfortable in quoting but maintain the aggressive pricing that is available for multifamily assets in the market today.” – Larry Peters