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HOUSTON-After 10 years of ownership and an extensive redevelopment, Anbil Corp. has refinanced River Oaks Plaza to retire a conduit loan and buy out an equity investor.
The Mt. Kisco, NY-based firm, headed by Andrew Heine, received a 10-year loan for more than $20 million from CIBC World Markets for the shopping center at 1422 W. Gray St. The loan has a fixed interest rate of 5.5% and 30-year amortization. The loan features two years of interest-only payments to soften the burden of the pre-payment penalties, says David Aaronson, a principal with Live Oak Capital.
"Lenders loved this deal," Aaronson tells GlobeSt.com. "It's great real estate and the tenants are doing well." He adds that Anbil chose CIBC World Markets because of a previous relationship.
Anbil plans to pay off a $14-million conduit loan and a $5-million equity piece provided by New Hyde Park, NY-based Kimco Capital Corp., a subsidiary of Kimco Realty Corp. According to the Harris County Appraisal District, the center is valued at $20 million.
Built 12 years ago on 14.9 acres near the northwest corner Gray Boulevard and Waugh Drive, the 195,254-sf River Oaks Plaza is 100% occupied. The tenant roster includes Marshalls, TJ Maxx and Fit Athletic Club. Luby's Cafeteria has a ground lease for its site. All leases are long-term pacts, Aaronson says. The center leases for $25 per sf to $28 per sf.
Anbil bought the center in 1994 in a foreclosure proceeding with First Interstate Bank of Texas. Originally, the center was anchored by Plitt Theater, which closed the River Oaks cinema in the late 1990s. Anbil sought an equity investment from Kimco to redevelop the center and brought in Marshall's in 2002. Fidelis Realty, a partnership of Alan Hassenflu and Lynn Davis, handles leasing and management of River Oaks Plaza.
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