DataBank Closes On $1.45B In Financing For 2 Deals: The DFW Deal Sheet
Dallas-based DataBank is aiming to strengthen its capital structure and support continued growth with more than $1.4B in new financing.
The firm closed an $800M revolving credit facility maturing in 2031 and a $650M upsize of its existing $2B construction financing for its 300-acre data center campus in Red Oak.
“As demand for data center capacity continues to accelerate, having a robust and flexible capital structure is essential,” DataBank President and Chief Financial Officer Kevin Ooley said in a statement. “This revolver, combined with the upsized Red Oak financing and our inaugural private placement, positions DataBank to move decisively as we expand our platform and deepen our relationships with hyperscale, cloud, and enterprise customers.”
Proceeds from the closed revolving credit facility will be used for general corporate purposes, including working capital needs, capital expenditures, and liquidity support for DataBank’s continued growth and acquisition strategy.
The corporate revolver was arranged by a syndicate of banks led by Citizens Bank, along with Citibank, MUFG Bank, PNC Bank, TD Securities, Truist Securities, U.S. Bank and Wells Fargo Securities.
The upsize supports the construction of a fourth building, adding 60 megawatts of incremental capacity. The deal consists of $400M in bank financing and $250M of notes in DataBank’s first private placement transaction.
MUFG served as lead placement agent, with TD Securities and Barclays as joint placement agents, and Citibank, Citizens Bank and National Bank of Canada as co-placement agents.
Davis Polk & Wardwell LLP served as legal counsel to DataBank on both transactions.
SALES
Oncor Electric Co. acquired approximately 4.5 acres at Commerce Street and Riverfront Boulevard near Downtown Dallas for the development of a new switching station intended to support future electrical demand in the area. Trinity Southwest’s Patrick Hunt and Cullen Finnegan and Transwestern’s Henry Knapek represented the undisclosed seller.
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Professional Equity Management bought the 306-unit Emerson at Red Oak multifamily community in Red Oak through a single-asset syndication with conservative agency financing provided through Fannie Mae’s Delegated Underwriting and Servicing program.
Built in 2023, Emerson at Red Oak is a two-story, townhome-style garden community on more than 17 acres at 351 Hickory Creek Drive. PEM Residential will operate the community for its parent company.
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Fort Worth-based private investment firm MainStreet Partners acquired the Heritage Trace Center portfolio in the Alliance area of North Fort Worth. The seven-building portfolio is an occupied, income-producing collection of medical office and retail buildings with a multitenant rent roll. Field Commercial Real Estate represented the seller, a private ownership group. Field CRE sourced the opportunity off-market and worked it through to closing on the seller's behalf.
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Bill Y Bob Partners LLC sold the property at 3601 Cedar Springs Road to KC Turtle Creek Owner LLC. The site’s existing zoning offers significant development flexibility, including options for multifamily, office and hotel use, with a maximum height of 240 feet. JLL Capital Markets’ investment and sales advisory team representing the seller was led by Jonathan Carrier, Michael Swaldi, Jody Thornton and Adam McDaniel.
CONSTRUCTION AND DEVELOPMENT
The Plano City Council approved several items on June 8 as part of the planned redevelopment of The Shops at Willow Bend into a sports and entertainment district anchored by a hockey arena for the Dallas Stars. The sports and entertainment district will be developed by Levin Holdings, Cawley Partners and Centennial.
Items approved by the council include a nonbinding letter of intent with the Stars, an incentive agreement with Levin Holdings and Cawley Partners, the establishment of a tax increment reinvestment zone for the property and surrounding development area, and a resolution needed to call a special venue tax election.
FINANCING
IPA Capital Markets arranged $15.4M in financing for a 60K SF industrial property in Dallas occupied by commercial kitchen provider Prep. IPA Capital Markets’ Frank Montalto and Ethan Splan secured a five-year loan at 75% loan to value with a local credit union. Additional terms include a 6.4% interest rate and a 25-year amortization period.
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Ariel Property Advisors’ capital services group arranged a nearly $5.9M cash-out refinance loan for a recently renovated 46-unit multifamily complex in Dallas. Ariel’s Matt Swerdlow and Anthony Priest negotiated the loan with a nationally chartered balance sheet lender on behalf of their client, a private investor. The seven-year loan was structured with a 5.75% fixed interest rate, 30-year amortization schedule and 75% loan-to-value ratio.
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JLL Capital Markets arranged nearly $40.9M in acquisition financing for the 288-unit Allura Las Colinas multifamily property at 6445 Love Drive in Irving. JLL represented the borrower, Brixton Capital, in securing the nonrecourse, fixed-rate loan through a life insurance company. The mid-rise community was built in 2003. JLL Capital Markets’ Aldon Cole, Tony Nargi, Jacob Martin and Caden Cramer represented the borrower, while the firm’s Dustin Dulin served as the local market expert.
PEOPLE
JLL hired David Cooke as executive vice president in the firm's Dallas office. Cooke brings more than 30 years of industry experience and tenant representation leadership to JLL. He will focus on growing the firm’s tenant representation services while supporting the leasing advisory team.
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Susser Bank appointed Daniel Voigt as senior vice president, relationship manager, for its Dallas team. Voigt brings nearly 20 years of experience serving middle-market companies with financing, capital planning and strategic advice. He will focus on expanding relationships with privately held businesses and entrepreneurs across North Texas.
