$36M Refi Arranged for Retail Portfolio

A TIC ownership refinancing to the tune of $35.8 million was arranged for a seven-property portfolio. The retail properties, mainly situated in Midland and Odessa, had originally been financed with a 10-year, fixed-rate CMBS loan that reached maturity. Metropolitan Capital Advisors’ Todd McNeill arranged the financing, while also negotiating a judgment settlement with a creditor that had prior litigation on the borrower’s principal.

The refi challenge also centered on poor sales comps; the properties’ appraisals had a lower value than the previous CMBS loan justified, requiring preferred equity financing with the new fixed-rate loan. In the end, the borrower’s 10-year loan had a 5.4% interest rate and a 30-year amortization. The preferred equity component came in at 14% interest only, co-terminus with the senior loan.

The portfolio consists of:

• Live Oak Center, 7903 Pat Booker Rd., Live Oak
• Gateway Center, 2300 Rankin Hwy., Midland
• Sunburst Center, 5107 W. Wadley Ave., Midland
• Crossroads Center, 2018 E. 42^nd St., Odessa
• East Ridge Center, 6012-6132 Eastridge Rd., Odessa
• Marketplace Shopping Center, 4555 E. University Blvd., Odessa
• Parkwood Place, 2235 Thousand Oaks Dr., San Antonio

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