July 24, 2017
A TIC ownership refinancing to the tune of $35.8 million was arranged for a seven-property portfolio. The retail properties, mainly situated in Midland and Odessa, had originally been financed with a 10-year, fixed-rate CMBS loan that reached maturity. Metropolitan Capital Advisors’ Todd McNeill arranged the financing, while also negotiating a judgment settlement with a creditor that had prior litigation on the borrower’s principal.
The refi challenge also centered on poor sales comps; the properties’ appraisals had a lower value than the previous CMBS loan justified, requiring preferred equity financing with the new fixed-rate loan. In the end, the borrower’s 10-year loan had a 5.4% interest rate and a 30-year amortization. The preferred equity component came in at 14% interest only, co-terminus with the senior loan.
The portfolio consists of:
- Live Oak Center, 7903 Pat Booker Rd., Live Oak
- Gateway Center, 2300 Rankin Hwy., Midland
- Sunburst Center, 5107 W. Wadley Ave., Midland
- Crossroads Center, 2018 E. 42nd St., Odessa
- East Ridge Center, 6012-6132 Eastridge Rd., Odessa
- Marketplace Shopping Center, 4555 E. University Blvd., Odessa
- Parkwood Place, 2235 Thousand Oaks Dr., San Antonio
For comments, questions or concerns, please contact Amy Sorter