Todd McNeill, senior director of the Dallas office of Metropolitan Capital Advisors, tells GlobeSt.com that the borrower, Dixie Partners II LP of Dallas did a "total cash out" of debt and equity with the financing for Dickinson Plaza, a suburban property in a small town about 29 miles southeast of Houston. He says the owner added so much value to the property that the loan still only had a 69% loan-to-value ratio. The 10-year loan has a sub-6.5% interest rate and 25-year amortization.
According to McNeill, the shopping center was just 60% occupied when Dixie Partners bought it in February. He says a $1.3-million renovation increased occupancy to 98%, driving a doubling of the cash flow.
Dickinson Plaza is positioned at the junction of Interstate 45 and FM 517. It and a Weingarten Realty-owned, grocery-anchored center make up the primary retail corridor for the town.
Dickinson Plaza is anchored by Palais Royal and Hollywood Video, with the balance of the roster consisting of State Farm, Family Dollar, H&R Block, Merle Norman, Pizza Inn, Radio Shack and Eckerd. McNeill says about 10% of the capital was withheld pending Hollywood Video's upcoming occupancy.
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