The Northwestern Mutual Life Insurance Co. has provided joint venture TPG/CalSTRS with a $95 million first mortgage on two buildings in Houston. The refinance loan is on CityWestPlace Buildings III and IV, which are part of a four-building office campus.
TPG/CalSTRS – owner of the properties since 2006 – is a joint venture between Los Angeles-based Thomas Properties Group Inc. and the California State Teachers' Retirement System.
The loan carries a 50% loan-to-value ratio and will mature in 2020. It bears interest at a fixed rate of 5.03% and replaces a short-term floating-rate $92.4 million loan that was scheduled to mature in July 2011.
Thomas Properties, which has increased occupancy in CityWestPlace to 99% from 78% when it was originally purchased four years ago, expects to benefit from increasing rental rates as leases that are currently below market rent come up for renewal in the next several years.
SOURCE: Thomas Properties Group Inc.