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Westlake Recaptures Equity With $98M in Loans

SAN MATEO, CA-Locally headquartered Westlake Development Group closes on several CMBS permanent loans that recapture capital used for recent all-cash purchases.

By Brian K. Miller | Updated on November 08, 2006

SAN MATEO, CA-Locally headquartered Westlake Development Group has mortgaged three assets it recently acquired in all-cash transactions and refinanced a fourth. In all, the company took out over $98 million in CMBS permanent loans on two retail assets and two office assets. The loans were arranged through Wells Fargo Bank by Buchanan Street Partners.

The properties acquired in the all-cash transactions–a shopping center in Gresham, OR and office buildings in Las Vegas and Albuquerque–were the back-end of an IRS 1031 exchange of proceeds from Westlake’s year-end 2005 sale of a six-property, 1,000-unit senior living portfolio for $126 million. The property being refinanced, another retail center in Gresham, was about to become subject to an interest rate swap.

Buchanan Street Partners managing partner Tom Sherlock and loan originator Jed Gates tell GlobeSt.com Westlake decided to leverage the assets now in order to take advantage of favorable interest rates. The interest rates on the loans were fixed below 6%, and the average leverage was in the 65% to 70% range. The terms on each permanent loan were structured with no loan fees, as non recourse and with all reserve requirements waived.

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