The Simpkins Group obtained $10.5 million of construction and permanent financing from Galveston-based American National Insurance Co. to develop the 90,000-sf build-to-suit. West Sussex, UK-based Invensys Systems has signed a 12-year lease for the two-story, class A office building, which will be situated on 8.3 acres at 10900 Equity Dr.
"Simpkins was looking for construction and perm financing so they could get the building built and either hold onto it or sell it once it was built," says Scott Bryant, vice president of locally based Live Oak Capital Ltd. who arranged the financing for the Simpkins Group.
According to Bryant, there were several lenders interested in providing the financing to the Simpkins Group. The 85% loan-to-cost financing features a 10-year, fixed-rate interest of about 6%, Bryant says. The loan is amortized over 25 years.
Bryant tells GlobeSt.com that American National, which is an exclusive correspondent, liked the build-to-suit's location, quality and the tenant's long-term lease. "They also liked the strong sponsorship that Simpkins provides," he says, adding the locally based developer is well known throughout the Bayou City for its build-to-suit expertise.
Invensys Systems, which creates automation and controls technology, will consolidate two offices on the city's west side when the project's done. "They wanted a more permanent presence in Houston and wanted a regional headquarters building," Bryant says. Invensys Systems will move about 230 employees into the facility in the third quarter.
Locally based Ambrose, McEnany and House Architects designed the project. Rosenberger Construction, also from Houston, is the general contractor.
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