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$7M-Plus Loan Refuels 99,920-SF Retail Owner

DALLAS-A local partnership, faced with an expiring CMBS loan, gets $7.5 million at a 75% LTV for Northlake Shopping Center. The three-year loan has a Libor-based floating rate.

By Connie Gore | Updated on July 24, 2008

DALLAS-With a CMBS loan coming due, a locally based investment group has secured a new $7.5-million loan, reaping some of its earned equity in the 99,920-sf Northlake Shopping Center. The fresh financing, timed to coincide with the CMBS maturity, was inked at a 75% loan-to-value ratio.

Eli Gershenson, director of Dallas-based Quantum First Capital LP, says the package took 90 days to pull together because the borrower of record, Westdale Northlake Ltd., wanted the new loan to kick in when the CMBS note, bearing a 4.8% fixed rate, expired for the 10233 E. Northwest Hwy property. “We could have closed it sooner if he’d wanted,” Gershenson says.

Northlake’s owner secured a three-year, Libor-based loan from Washington Mutual Bank, one of four lenders looking at the deal for the 80%-leased shopping center, according to Gershenson who partnered with Quantum president Stuart Wernick to arrange the new debt. WaMu’s interest rate and maximum proceeds earned the nod, Gershenson says, adding the deal enabled the borrower to monetize additional equity derived from a renovation.

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