Gables and Dallas-based Granite Properties have been prepping the 2.2-acre site at 1717 McKinney Ave since April. Gables' plan calls for 292 rental units on 20 floors atop 14,000 sf of retail while Granite's stake will be a 361,524-sf, 19-story office building. The towers, with LEED certification as part of the plan, will be linked by a six-level parking garage and shared amenity deck. The developers are eyeing delivery in April, possibly May, 2010.

David Reece, senior vice president of finance and capital markets for the Atlanta-based Gables, tells GlobeSt.com that Charlotte, NC-based Wachovia is the lead lender, with Birmingham, AL-headquartered Compass Bank in a participating role. "Most banks today don't want to keep more than $30 million on their books," he explains about the motivation for the split. Teams in Atlanta and Houston for Wachovia and Compass, respectively, arranged the financing.

Amenity Deck

"Both Wachovia and Compass are familiar with the market and know the location," Reece says. "They recognize the location is a very good one." The two towers will sit at the kissing point of McKinney Avenue, Cedar Springs Road and North Akard Street.

Gables, like others, still had to battle the capital markets' turmoil to win financing despite its financial muscle. "Generally, it was more difficult given the constraints of the capital markets," Reece says. "We had other loans from both banks so it was a good fit. It wasn't much longer than normal."