Inland, Weber Secure $46M Loan for Center

THE COLONY, TX-A joint venture of Chicago-based Inland American Real Estate Trust Inc. and three unaffiliated entities created by Dallas-based Weber & Co. secured financing for a proposed 287,967-sf Target-anchored retail center at North Josey Lane and State Highway 121. Neither company responded to requests for details, but a recent SEC filing reveals the partners received a $45.5-million loan from Compass Bank for the project.

According to the filing, Inland American Lewisville LP, LLC contributed approximately $10.2 million in equity to the venture and the Weber limited partners contributed approximately $1.1 million. The project, which is slated to be built on vacant land across Highway 121 from an existing Wal-Mart Superstore, is budgeted at $56.8 million. The loan covers both land acquisition and development costs and has a 7% interest rate. It matures on May 16, 2011, but may be extended for an additional two years. In the event development costs exceed the amount budgeted, Inland American may, but is not required to, contribute additional funds to the venture in the form of a loan bearing 20% interest.

Under the joint venture agreement, one of the Weber entities, Weber Lewisville GP Inc., will manage the acquisition and development process. In exchange, it and the two other Weber entities, Weber LTC LP and DB/EB LTC LP, will receive a development fee equal to 4.5% of the hard construction costs, not to exceed $1.2 million. Inland American will be entitled to a property management fee equal to 4.5% of gross revenues.