Dealmaker: Cohen Financial Arranges $15M in Arizona, Texas

Cohen Financial, Chicago, secured $14.8 million for retail and office properties in Arizona and Texas.

In Arizona, Cohen Director of Capital Markets Kevin Sellers and Associate Kristen Holdaway arranged an $8 million development loan to construct Higley Plaza in high-growth Phoenix suburb Gilbert. The development covers 55,545 square-feet of retail property across four buildings anchored by EOS Fitness.

The floating-rate construction loan from FirstBank will convert after two years to a three-year fixed-rate loan. The transaction closed on April 7. 

“Even though the financing includes very strong equity, 70 percent pre-leasing and a strong client, construction loans are still a challenge to secure,” Sellers said. “Now more than ever, it is imperative for commercial real estate developers to engage professional representation when sourcing a construction lender and securing optimal loan terms.”

Sellers said arranging commercial property construction financing is becoming more difficult due to increased regulation of commercial banks. “New regulations are causing banks to tighten lending criteria in order to reduce construction risk in their commercial loan portfolios,” he said.

In Texas, Cohen Financial Vice President of Capital Markets Casey Townsend arranged $6.8 million for Spur Ridge Real Estate Co. to acquire the Allen Tech Center, an 85,000-square-foot one-story office/flex property near Dallas. Townsend secured the 10-year, 75 percent loan-to-value fixed-rate commercial mortgage-backed securities loan with Morgan Stanley.

“Allen Tech Center is located in a great submarket with low vacancy rates,” Townsend said. “This transaction spotlights the fact that lenders are interested in the Texas commercial real estate market, especially the Dallas area.”