Lender's Inroad Puts $58M Into $220M Project

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DENTON, TX-Marching into Texas with a $58.57-million financing, the La Jolla, CA-based Scripps Investments & Loans Inc. has cleared the way for the 1.3-million-sf Northlake Town Center to become reality. The lender’s first deal in the state is a 62% loan-to-value package of seed and construction capital at a blended fixed- and floating-rate interest averaging 13%.

Developer Eric Cox, president of Trophy Design & Development Associates of Tarrant County, put $5 million on the line to secure the Scripps loan, which is an interest-only vehicle with an 18-month term plus up to two years of extensions, according to David Braga, a Scripps underwriter who helped to package the deal. He tells GlobeSt.com that the $19.1 million of construction funds for the estimated $220-million retail project will be released when the developer meets preleasing or presale conditions that require signed contracts with one anchor, one major retailer and a multi-screen theater. And, the prediction is that will happen within six months of the 157.87-acre acquisition from a local family, HT Properties LLC.