Half-Leased One Northchase Park Gets Non-Recourse Bridge Lending

Your deal doesn’t have to be perfect to get financed--Q10 KDH VP Travis Fite closed a $2.8M fixed-rate acquisition loan for One Northchase Park while the Class-B office building was only 50% occupied. Surprisingly, the bridge money was quick-close and non-recourse (that’s rare for a property that’s not stabilized) to allow the borrower to acquire, renovate and lease the historically underperforming building. Travis tells us the lender got comfortable with the deal because the borrower knew the 1960 office submarket so well. Travis is pictured with his wife, Jennifer, who’s due with their first child today—he’s proud to say the little boy will be a seventh-generation Houstonian.

The bridge lender partnered with a life insurance company to fund the deal on its balance sheet, another unique aspect, Travis says. That program’s only been around about a year, and it’s a great option for borrowers to get non-recourse debt without a personal guarantee. The buyer liked One Northchase Park for its value-add potential—it’s been difficult to find those opportunities lately, and this deal was done off-market. Travis tells us Q10 KDH expects even more life insurance company allocations to real estate this year than 2014, and says those groups still have a great perception of Houston’s investment opportunities.

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