Northlake Meridian LLC has assumed a $1.35-million loan at a 5.75% fixed-rate interest, opening the play with an 8.27% cap rate at 10405 E. Northwest Hwy., according to the marketing flyer. The 10-year financing, maturing in June 2015, represents a 60% loan-to-value ratio. Charles Scott with Minneapolis-based NorthMarq Capital Inc. in Dallas steered the assumption process.
The deal's lone broker says the new owner was up against three other offers that rolled in during the two-week marketing. "This buyer saw the potential. The average rents were low, the price per sf was low," Joe Garret with Sperry Van Ness in Dallas tells GlobeSt.com. "They saw they could make a renovation and make a potential return." Dallas-based Square Foot Inc. is the seller of the 3.65-acre property.
Garret says the buyer plans to push the class C space to class B quality with upgrades to the exterior, interiors and mechanical systems. Work is slated to get under way in the coming weeks. The buyer's Wilshire Beverly Management Co. will lease and manage the asset, now leased to 14 medical and office tenants. The largest tenant is Life Net Community Behavioral Healthcare Inc. with 18,142 sf.
Garrett says the buyer has built in a five-year hold for Northlake Doctors Building as he builds a portfolio of office and retail properties. If all goes as planned, two more deeds could be in hand by year's end, according to Garrett.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.