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HOUSTON-Greenberg & Co., a locally based developer, has obtained a $10.6-million non-recourse loan for a 40,391-sf unanchored retail center, Centre@Greenway. The loan retires recourse financing from a local bank.
Greenberg's 10-year refinance, amortizing over 30 years, has a fixed-rate interest of 5.56%, according to Greg Young, a producer in Live Oak Capital Ltd.'s local office who arranged the financing through New York City-based Lehman Brothers Bank FSB. Built in 1998, the fully leased center at 3831 Richmond Ave. abuts an Edwards Cinema.
"This center is a marquee-quality real estate with incredibly high traffic counts," Young says, referring to the intersection of Richmond Avenue and Weslayan Street. He tells GlobeSt.com that the strength of the deal is the location, sponsorship and operating history of the property. "This was a very easy property to market to the capital markets," he says, adding Greenberg & Co.'s recognition and reputation with lenders also carried weight in securing the financing.
"The appetite for this kind of property is very strong and lenders have gotten really aggressive compared to just a few years ago," Young says. Greenberg first looked at refinancing the property about two years ago, according to Young, who adds that the response this time around was far more voracious. As a result, the financing closed much faster than expected, he says.
Young says the center historically has maintained a strong occupancy. Today's roster includes Chipotle, Colinas Italian Restaurant and Darque Tan. Rental rates range from $24 per sf to $30 per sf, triple net.
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