For more retail coverage, click GlobeSt.com/RETAIL.
SUGAR LAND, TX-Local developer and owner Weaver, Davis & Jacob Realty Group has secured a $5.2 million permanent loan from Wells Fargo Bank to pay off the construction loan on Lexington Square, a year-old 42,493-sf retail and office development. The 10-year loan has a fixed interest rate of 5.37% amortized over 20 years.
Moreover, the loan offers an earn-out structure for the property, which means that Wells Fargo provided a loan based on the value of the property once it has reached lease up, Greg Young, a producer with Houston-based Live Oak Capital,tells GlobeSt.com. He and colleague Jim Kirkpatrick arranged the loan.
"There aren't a lot of lenders that do an earn-out structure, but in this case it was really good real estate and good sponsorship," Young says. "Everybody liked the deal, so it was easy to get creative."
Situated on nearly five acres at 16515 Lexington Blvd., Lexington Square is comprised of two buildings that offer 26,174 sf of class A retail space and 16,319 sf of class A office space. At the time of closing, Lexington Square was 70% leased.
Retail tenants include Sienna Cleaners, Philly Connection, Wing Stop and Skeeters, while Weaver, Davis & Jacob occupies a portion of the office space as its corporate headquarters. The firm's investment partner, 3131 Properties, is also a tenant. The retail space leases for roughly $25 per sf, while the office space leases for about $15 per sf, according to Young.
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