Manage Recent Transactions for Texas Commercial Mortgage
In 2021 post pandemic commercial mortgage rates hit an all-time low, which prompted the borrower to take advantage of this historically low interest rate of 3.50% offered by a national credit union.
Loan terms were 75% LTV, fixed rate for 10 years (balloon of 10 years) and 30-year amortization. As with most credit unions this loan has no early prepayment penalty. Escrows for property taxes and insurance were not required either, which gave the borrower even more control over his cash flow.
Two Woodfield Crossing was a full-recourse acquisition loan financed by a local credit union who was very familiar with this suburban office submarket located northeast of downtown Indianapolis. Loan terms: 70% LTV, 7.20% fixed rate, 5 yr term, 25 yr amortization, 54321 early prepayment penalty.
The property was sold via an online auction offered by Ten-X (an affiliate of CoStar) on behalf of a motivated institutional seller. The challenge in this transaction was the extremely low occupancy, which was 49% at the time of closing. The other challenges included just finding a lender who was willing to finance this office building considering the alarming rise in loan maturity defaults on office loans, a national decline in the average office occupancy and of the course the stubbornly waning demand for office space due to the post pandemic trend in the resistance to return to the office (working remotely).
Two Woodfield Crossing is a 120,000 SF, 5-story Class A office building built in 1987 and is one of four class A office buildings located in a suburban office park called Woodfield at the Crossing. Woodfield at the Crossing is located in the Keystone Crossing Office Submarket (the “Submarket”). Home to 133 office buildings totaling 5.8M square feet, Keystone Crossing is one of the Indianapolis area’s largest office submarkets. The Submarket is located 10 miles north of downtown and is bisected by I-465 allowing for regional access to and from the Submarket.
The new Lone Star Brewery financing was an interim development loan used to payoff an existing loan that had matured in 2017. The term of the new loan was for 2 years, interest only with an option to extend for an additional 6 months.
The collateral for the new loan is the historic site of the former Lone Star Brewery and Cannery situated on 32.02 acres of land just south of the downtown San Antonio River Walk. The Lone Star Brewery District is a redevelopment project that when completed will be a $300 million mixed-use development comprised of 156,540 SF of office space, 87,164 SF of retail, a 34,645 SF cinema, 40,059 SF of entertainment venues, 46,834 SF of restaurant space, 22,521 SF of open market space, 135 room boutique hotel, 750 luxury apartment homes and a amphitheater.
This was a nonrecourse CMBS cash-out refinance. Loan terms: 5.17% fixed rate, 10 yr balloon, 30 yr amortization, $250,000 holdback for TILC reserves. The challenge in this transaction was the high concentration of near-term rollover due to the high number of short term leases.
This single loan was collateralized with two (2) office/flex warehouse properties located about 1 mile apart. The borrower’s local bank was not willing to provide any additional cash-out proceeds on his existing loan that was needed for a new ground-up project. With this new loan the borrower was able to pull out an extra $1,000,000 in cash-out proceeds over and above his existing loan with a local bank.
Magnolia Technology Park is a class A office/flex warehouse built between 2012 – 2015. The other property referred to as Tamina Office Park is a class A office warehouse and was built in 2010.
This was a Freddie Mac nonrecourse permanent fixed rate acquisition loan.
Loan terms: 75% LTV, fixed rate of 4.38%, 10 yr term (balloon), 30 yr amortization, I/O for 3 yrs, declining prepayment penalty 5544332211, no monthly escrows except for Real Estate Taxes and no holdbacks. No Phase I ESA is required.
Loan was funded in 63 calendar days from the day the Loan Application was signed.
4.0% fixed rate for 5 years then resets at market for another 5 years with a balloon payment after 10 years; no prepayment penalty and no monthly escrows.
