Terra Capital Helps Finance Sheraton Buy

FORT WORTH-New York City-based Terra Capital Partners closed a three-year, $8.8 million mezzanine loan as part of multi-level financing for the Presidio Cos.' purchase of the Fort Worth Sheraton Hotel & Spa, a 431-room full-service downtown hotel minutes from the city's convention center. Presido acquired the hotel, at 1701 Commerce, from bankruptcy this past summer.

“This was a very complex deal,” says Bruce Batkin, president and CEO of Terra Capital. "The hotel had been operating in bankruptcy and was facing imminent foreclosure. Our financing was part of a $58 million capital stack that enabled the borrower to acquire the hotel out of bankruptcy through a section 363 sale.”

The complexity of the transaction and the impending foreclosure, Batkin explains, required Terra to quickly sort through a tangle of legal issues and devise solutions that addressed the concerns of not only the new lenders and equity providers but also those of the various creditors in the bankruptcy.

“Our piece of the capital structure was critical to facilitating the purchase of the hotel and funding a $4 million property improvement program, which will allow the sponsor to implement a new marketing and management plan,” Batkin adds. “We believe the combination of a talented new management team, the redesign of the lobby, restaurant and bar, and the expansion of the convention business in Fort Worth will lead to increased Rev-PAR, cash flow and a significant increase in value for the new owner.”

Terra Capital Partners specializes in mezzanine, preferred equity and bridge financing backed by cash-flowing and transitional properties nationwide. The company fills the gap between the first mortgage loan and the borrower's equity by funding up to 85% of the value of the underlying property.

Terra has discretion over its funds and typically holds its loans to maturity. Since 2002, it has originated more than 250 debt and equity investments in the U.S. backed by 30 million square feet with an underlying value of about $5 billion. Visit www.tcp-us.com.

ACQUISITIONS/DISPOSITIONS

ARIZONA

Chandler

Krispy Kreme Doughnuts purchased the former 3,504-square-foot Washington Mutual Bank building at Chandler Boulevard and Alma School Road. Andy Kroot of Velocity Retail Group LLC represented the buyer, Hot Glazed Enchantment Inc. of New Mexico. SRS Real Estate Partners represented the seller, Grossman/Robson Associates in the $837,500 sale.

Phoenix

ALDA 2011 LLC of Paradise Valley, AZ purchased the 28-unit Pierson Place Apartments at 365 W. Pierson St. Brian Smuckler and Jeff Seaman of CBRE represented the buyer and the seller, LSREF2 APEX (AZ) LLC of Dallas in negotiating the $1 million transaction.
The 24-unit Campbell Apartments at Campbell Avenue near 24^th Street has sold for $1.2 million. Brian Tranetzki and Rich Butler with Marcus & Millichap Real Estate Investment Services represented the Southern California seller and sourced the buyer, a capital investor from Scottsdale, AZ.

TEXAS

Frisco

Two land parcels totaling close to 8 acres at the intersection of Technology Drive and John W. Elliott Drive have sold. Lane Kommer with Henry S. Miller Brokerage represented the seller.

Fort Worth

The 17,000-square-foot Eagle Mountain Plaza at 8455 Boat Club Rd. has sold. Mark Boone with Realty Capital Management LLC represented the seller.

Houston

BGK Integrated Group sold the 57,811-square-foot 114811 St. Mary's Lane to Mission Equities. HFF's Dan Miller led the team representing the seller.

LEASING

TEXAS

Austin

Wahoo's Fish Taco leased 3,500 square feet at Arbor Town Square, 10717 Research Blvd.. Carter Bailey and Cole Brodhead of Retail Solutions represented the landlord, and Bryan McMurrey of CBRE represented the tenant.

Bedford

Molly Maid renewed its 1,525-square-foot lease at 1912 Central. Beaux Riley with SCM Real Estate Services represented the landlord in this transaction.

Cedar Park

Art + Academy leased 1,700 square feet at 3621 E. Whitestone Blvd.. David Schoenemann of Retail Solutions represented the landlord.

Dallas

Acoustical Services Interiors leased 7,400 square feet at 4656 Leston Ave. Phil Rosenfeld and Matt Thompson with Colliers International represented the landlord, Regal Business Center LLC, in the transaction.
Southland Farm Store leased 18,000 square feet at 4647 Leston Ave. from Regal Business Center LLC. Charlie Dale with National Real Estate Group represented the tenant. Phil Rosenfeld and Matt Thompson with Colliers International represented the landlord.

Grapevine

RaceTrac Petroleum leased 12,000 square feet at 1200 Texan Trail. Tim Vogds and Steve Koldyke with CBRE represented the tenant. Phil Rosenfeld and Matt Thompson with Colliers International represented the landlord, Tarrant County Properties.

Houston

Cornerstone Home Lending Inc. expanded its office space by 7,620 square feet at 1177 West Loop South. The landlord, 1177 WLS, LLC, was represented by Michael Sieger and Wade Bowlin of PM Realty Group. Marshall Clinkscales of Colliers International represented the tenant.

Allison Knight and Chip Colvill of Colvill Office Properties represented landlord Greenspoint Plaza LP in negotiating the following leases at Four Greenspoint Place, 16945 Northchase:

Nine Energy Service, an oil field services firm, leased 6,882 square feet for its headquarters. Diana Bridger and David Bale of Jones Lange LaSalle represented the tenant.
Savannah Oil and Gas LLC., an oil and gas integrated service provider, leased 6,044 square feet to relocate its Houston office from 16800 Imperial Valley. Paul Stryker of Stryker Commercial Realty represented the tenant.
Sirius Minds, a software developer, has leased 2,000 square feet for its headquarters. Diana Gaines of The J. Beard Real Estate Company LP represented the tenant.

Kenedy

GNC leased 1,200 square feet at Kenedy Junction, 205 Business Park Dr. Ryan Hoff of Retail Solutions represented the landlord, and Michael Dearden of Venture Commercial represented the tenant.

Killeen

Metro PCS leased 1,200 square feet at Mizpah Plaza, 2006 E. Rancier. TJ Powell of Retail Solutions represented the tenant, and Roger Segal of David Barr Properties represented the landlord.

Pasadena

Holman Boiler Works Inc. signed a build-to-suit lease for a 24,000-square-foot manufacturing facility on a 2.54-acre site at Bayport North Industrial Park II, and Underwood and New Decade Roads. Holman was represented by Rob Stillwell at Newmark Grubb Knight Frank. The property is a project of North Bayport Industrial Park II, a Texas limited partnership. The landlord was represented by B. Kelley Parker III with Cushman & Wakefield of Texas. Holman's site is at the southeast corner of Underwood Road and New Decade Road within the park.
Seaway Crude Pipeline Co. leased 30,000 square feet at 1605 Genoa Red Bluff Dr. John Ferruzzo and Chris Kugle of NAI Houston represented the property's landlord, Bart Industries LP in the lease transaction.

San Antonio

BTP Asset Management leased 3,000 square feet at 6737 Poss Rd. in San Antonio. Terence Bell of Retail Solutions represented the landlord, and Homer Longoria represented the tenant.
Wing Daddy's Sauce House leased 4,000 square feet at Mission Plaza, 1115 SE Military Dr. Kay Lewis of Retail Solutions represented the landlord, and Jonathan Collins of Valcor Commercial Real Estate represented the tenant.

MARKETING/LEASING ASSIGNMENTS

TEXAS

Fort Worth

SCM has taken on the leasing and management duties for the 50,586-square-foot Atrium West at 8851 W. Camp Bowie Blvd. Theron Bryant and Casey Tounget with SCM Real Estate Services will handle the leasing. Bret Messer, also with SCM, will receive the management reins for the building.

EXECUTIVE MOVES

ARIZONA

Phoenix

Curtis Chickerneo has been named associate in the office properties division of Cushman & Wakefield of Arizona, Inc. Chickerneo was introduced to Cushman & Wakefield as a research department intern earlier this year. Chickerneo is originally from Chicago and has a Bachelor of Arts degree in Interdisciplinary Studies from Arizona State University.

Scottsdale

Michael E. Farrar has been hired at Colliers International Greater Phoenix as a vice president specializing in residential land acquisitions and dispositions. Before joining Colliers International, Farrar served as the president and designated broker for Coldwell Banker Commercial Metro Central for the Phoenix region. The native Arizonan has a broker's license with the Arizona Department of Real Estate. He earned MBAd from Thunderbird School of Global Management and the Helsinki School of Economics in Finland. He graduated cum laude from Northern Arizona University's W.A. Franke College of Business with a bachelor's degree in international economics.

TEXAS

Houston

Damon Thames has joined Colvill Office Properties as vice president. Thames will handle leasing and marketing activities for the firm's Houston portfolio. Prior to joining Colvill Office Properties, Thames served as managing director with Studley in Houston. Damon Thames began his career in commercial real estate with CBRE in Houston as an associate in tenant representation. Thames was a professional baseball player for the St. Louis Cardinals from 1999 to 2001 and worked as a sports agent with Creative Artists Agency in Los Angeles for five years. He is a Rice University graduate with a Bachelor of Arts in Economics, Managerial Studies and Sports Management.
Paul Hooks has joined Moody Rambin as the director of construction management in the Property Management Group. Prior to joining Moody Rambin, Hooks worked for firms including Warwick Construction, Landry's Restaurants Inc. and Camden Construction.

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