Hunt Mortgage Group, a leader in financing commercial real estate throughout the United States, announced today it provided a first mortgage bridge loan in the amount of $5 million to refinance Park Place Business Park, an office property located in Stafford, Texas. The loan is structured as a 24-month floating rate loan with three 1one-year options to extend the loan term.
Proceeds from the loan will refinance the existing first lien mortgage, reimburse shareholders for recent contributions to re-tenant the property and fund additional tenant improvements. Located at 11104 W Airport Boulevard, Park Plaza Business Park is a Class B office property that was built in 1983 and consists of 92,864 square feet of rentable area.
The borrower is Stafford Office Park II, LP, sponsored by Titan Real Estate Investment Group and its Principal, Kevin Kaseff. Under Mr. Kaseff’s leadership, Titan Real Estate Investment Group has, since its inception in 2006, acquired nearly $2B of commercial real estate. The acquired properties include 5.5 million square feet of office, industrial, cold storage, and retail properties and in excess of 26,000 multifamily and senior housing units. The loan was facilitated by Houston, Texas based Q10 Kinghorn Driver Hough and Co. Vice Presidents Buddy Hopson and Travis Fite.
“The borrower originally acquired Park Plaza Business Park in 2005 as a single‐tenant building leased to Input/Output,” noted RJ Guttroff, Managing Director at Hunt Mortgage Group. Over time, Input/Output subleased portions of the building to outside tenants. When the lease expired in late 2015, Input/Output vacated the building and the building’s occupancy dropped to 32.8%. Since then, through ongoing leasing efforts, occupancy has recovered to around 62% “After corporate consolidations in the third quarter of 2015, Input/Output vacated the building and sublet the space to multiple tenants. This new loan will enable the sponsor to undertake full tenant improvement.”
Park Plaza Business Park is located in the office submarket of East Fort Bend County/Sugar Land, which boasts an occupancy across all office of 90.1%, outperforming the city‐wide average.
Population in the local area is expected to increase and new planned development will help increase the performance of the local market.
“The borrower is a seasoned commercial real estate owner that is well versed in all aspects of investment including acquisitions, dispositions, financing, leasing and asset management, and have successfully completed and managed commercial real estate transactions nationally and internationally,” added Guttroff. “They have already shown success in improving tenancy and expect to fully stabilize the property over the next twelve months. We were pleased to have made this bridge loan for this solid sponsor.”
The subject is located in the East Fort Bend County/Sugar Land Submarket within the Houston office market.