NorthMarq Navigates Difficult Capital Markets for Havenwood Loan

Havenwood Office Park, a 240,000-square-foot class-A office property, is located at 25700 I-45 in The Woodlands, TX. Its refinancing transaction was structured with a 10-year term with five years of interest-only followed by a 30-year amortization schedule.

Warren Hitchcock of NorthMarq’s Houston office arranged the permanent-fixed loan with a 3.7 percent interest rate for the borrower through its relationship with a nonbank securitized lender. NorthMarq was able to successfully navigate difficult capital markets during the first half of the year to provide the borrower with a significant return of equity and long-term loan despite the pandemic and the building’s largest tenant not taking occupancy until closing. The transaction required multiple tours and discussions on the market to educate lenders on The Woodlands office market and the specific asset.

“The owners of this property developed an extraordinary class-A LEED-certified office product and completed lease-up to a diverse group of tenants without any oil and gas concentration. Securing financing for an office asset in Houston during a pandemic and a recovering oil/gas market was not the highest priority for most lenders, regardless of the quality,” says Hitchcock. “The borrowers were very pleased with the terms from lender and service from Northmarq on a quick 30-day closing.”