Dealmaker: Q10 KDH Closes Two Texas Deals

Q10 Kinghorn, Driver, Hough & Co., Houston, arranged $44 million for Centre at Bunker Hill, a Class A retail center in Houston.

Q10 KDH Vice President Matt Franke secured the funds from Northwestern Mutual, Milwaukee. He said the loan consolidated existing loans held by three separate lenders.

Franke said Q10 KDH has placed the financing for this property three times since its initial development. “Our initial financing was placed on behalf of the original developer, next we financed a portion of the property when the current owner SmithcoDevelopment acquired Centre at Bunker Hill and now with the consolidation of debt on the property.”

The fully occupied Centre at Bunker Hill includes anchors Best Buy, Costco and Lowes in its 431,000 net rentable square feet.

Franke and Q10 KDH Associate Emily Zarcaro also secured permanent financing from Symetra Financial, Bellevue, Wash., for The Centre at Greatwood, a single-story retail center in Sugar Land, Texas.

Zarcaro said the fully occupied property received considerable interest from lenders due to its stable historical performance, the experience of the borrower and the strength of the submarket. “Ultimately, Symetra won the business with their competitive rate in the low fours, minimal closing costs and 120-day forward rate lock,” she said.

Borrowers see an opportunity now to secure long-term financing at low rates, Zarcaro noted: “They’re seizing that opportunity, especially given a certain amount of uncertainty coming into 2016.”