The Larkspur, CA-based investor financed the purchase of the 7000 FM 1960 Rd. West property through CIBC World Markets. The three-year loan offers floating rate debt at Libor plus 250 basis points. The financing includes $850,000 for renovations to the 10-year-old center, which is 78% leased.
According to Brant Smith, a director with Holliday Fenoglio Fowler LP who arranged the financing on behalf of Fowler Partners, several bridge lenders were interested in providing financing for the project. However, the borrower chose CIBC Capital Marketsbecause of an established relationship.
The shopping center, situated on about six acres in the Humble submarket in the northeast sector, lost its Wal-Mart anchor months ago when the retail giant moved into a larger format store across the street, Brant says. Wal-Mart owned its space in Atascocita Town Center and the inline balance owned by Dallas-based TCP Atascocita Partners Inc., which purchased the center in 1998.
Smith tells GlobeSt.com that Fowler Partners was able to work with both Wal-Mart and TCP to gain control of the entire center. Now, the new owner will rehab and reposition it. Current tenants include Palais Royale and Union Planters Bank.
"They bought the center as a value-add opportunity," Smith says. He adds Fowler Partners is very active in the Houston metro area. Earlier this month, the company acquired South Shore Lakes, a 328-unit community located at 3850 FM 518 East in League City near NASA from Hettig-Kahn.
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