Case Study: $17.6MM Office Building | Recapitalization | Houston, TX
Structured and arranged long-term, fixed-rate senior debt to recapitalize a 140,000-square-foot, multi-tenant office building in Houston, TX.
Contending with a looming loan maturity and several leases coming due, the borrower was seeking to lock in a long-term, fixed-rate loan on a non-recourse basis. Furthermore, volatility in the bond markets was causing swaps and spreads to fluctuate during the closing process, impacting underwriting thresholds.
Identified a lender familiar with the property (via an affiliated B piece buyer) and comfortable with the ownership structure of the underlying asset. Levering a long-standing relationship, the lender paired back some of the lost spread prior to closing to "right size" the underwriting metrics and consummate a successful closing at full proceeds.