Category Archives: Retail

Shopping Center Deal Closes at 69% of Purchase Price

Q10 KDH Vice President Ryan Watson provided acquisition financing for a 100,000-square foot, grocery-anchored retail center in Houston, TX. Ryan worked on behalf of the buyer to obtain a 10-year, fixed-rate loan from one of Q10 KDH’s life company lenders. The loan closed at 69% of acquisition cost and featured three years of interest-only payments followed by a 30-year amortization on a non-recourse basis.

“The property is well located on Interstate 10 on the east side of Houston and has upside potential with the existing tenant base,” Ryan said. “The buyer wanted non-recourse financing through a life company execution. We were able to offer many options through our vast number of life company relationships and ultimately ended up at a 69% of purchase price loan.”

CLOSED: Post Oak Square

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.”

CLOSED: The Market at Crenshaw

Q10 KDH Vice President Ryan Watson was able to secure a 75% leverage acquisition loan for a retail property in Pasadena, TX with multiple “Big Box” tenants. The transaction closed with a 10-year term and a 5.08% interest rate through a CMBS lender. Given the caution in the retail lending environment, especially for big box tenants, Ryan was able to identify a lender who could understand the strong momentum of the market coupled with strong tenant sales to obtain a 75% of purchase price non-recourse CMBS loan.

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.

Kroger-Anchored Retail Center Financed in Sugarland, Texas

Q10 KDH Vice President, Ryan Watson provided acquisition financing for Fort Bend Center in Sugarland, Texas for the Dhanani Private Equity Group. The property is a Kroger-anchored retail center that covers over 42,000 SF of space. The CMBS Lender achieved a loan for 75% of the purchase price and 30 year amortization on a non-recourse basis. The loan closed at a 5.05% rate with 10 years, fixed-rate financing.

“The Dhanani Private Investor Group was able to see the long-term value in the center given the expansion occurring in the city of Sugar Land, Texas. Many of the tenants have been in the center for over a decade and have realized the growth of the area. Q10 KDH was able to provide the acquisition financing needed for the project and execute a smooth closing processes with a CMBS lender with no surprises.” – Ryan Watson

Class A, Mixed-Use, Retail Property Financed in Houston

 

Ray Driver, Matt Franke & Adam Unger of Q10 KDH arranged financing for Boardwalk at Towne Lake. Boardwalk is a class A mixed-use property located in the northwest region of Houston, TX.

Long-term, fixed-rate financing was provided by Q10 KDH correspondent lender, Thrivent Financial. The asset spans over 124,800 square feet for retail, restaurant, and office use.

“KDH has a long relationship with Caldwell Companies, and we’ve witnessed their Towne Lake master planned development blossom since the project’s initial inception. The financing assignment was very specific, and we surveyed a broad spectrum of prospective lenders including banks, private lenders, debt funds and life insurance companies. Working with the borrower, we filtered numerous competitive loan proposals and ultimately selected our correspondent lender, Thrivent Financial, based upon their combination of rate, loan term, and prepayment flexibility. Caldwell secured an early rate lock when the application was signed, and together we processed the loan as a team. Our borrower benefits from a long term  fixed rate loan and Thrivent is comfortably secured by the regions’ premier mixed use development.” – Matt Franke