FRISCO, TX-Hall Financial Group has refinanced a three-property, 375,694-square-foot office portfolio within Hall Office Park. Deutsche Bank Securities Inc. provided a $43.1 million loan to the Dallas-based developer and owner.
The existing portfolio loan on the three buildings was maturing this year, according to HFF managing director Steve Heldenfels. He and Whitaker Johnson, a senior managing director with HFF, arranged the financing for Hall Financial.
“The timing was very important to the borrower,” Heldenfels says, adding that Deutsche Bank was able to fund the loan in less than 40 days from initial application. “Deutsche Bank had a great deal on the table, well priced and showed a lot of service and that they could close in time, won the deal on service and providing best loan terms.
The portfolio generated a significant amount of interest from both CMBS and life companies, Heldenfels notes. Lenders were particularly attracted to the location of the buildings in the Far Dallas North Tollway submarket.
The three properties are located at 2600 Network Blvd. and 3000 and 3211 Internet Blvd. close to Texas Route 121 and the Dallas North Tollway. The properties are 93% leased to tenants including: ThyssenKrupp Elevator Corp.; Sanyo; Citrus Energy Corp.; Blade Energy Partners; and Oracle.
“The office market there is very tight – more than 90% occupied, and when the lenders were analyzing the office markets across Dallas, they were able to underwrite the deal to get the proper level of financing,” Heldenfels tells GlobeSt.com, adding that the 10-year, fixed-rate loan has an LTV of roughly 70%. “In addition, lenders responded positively to the sponsorship."
The six-story 2600 Network Blvd. was completed in 2006 and offers 143,542 square feet of class A space. Completed in 2007, the six-story building at 3000 Internet Blvd. has 144,913 square feet, and 3211 Internet Boulevard, built in 2005, is a three-story building with 87,239 square feet.
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