JLL Capital Markets placed the loan with TIAA Bank for the office asset near Houston’s Memorial Park
JLL Capital Markets announced today that it has arranged refinancing for Memorial Park Place, an 80,349-square-foot office property in Houston, Texas.
Working on behalf of Gupta Partners, JLL placed the 10-year, fixed-rate loan with TIAA Commercial Finance, a division of TIAA Bank.
“As a national provider to commercial space, Gupta Partners believes in Houston’s submarket specific long-term growth potential,” said Jonathan Gupta of Gupta Partners. “The buildings proximity to downtown and one of the largest national urban parks are driving factors in our investment strategy. Therefore, we are investing significant capital in the overall appearance of Memorial Park Place, including the lobby, common areas, entranceway and facade.”
The five-story property is positioned at 550 Westcott Street on the cusp of the Rice Military and Crestwood/Glen Cove areas in Houston’s northern Inner Loop. This location is just south of Interstate 10 providing regional connectivity through Greater Houston and just east of Memorial Park, which affords tenants access to walking trails, golf and additional outdoor recreation options. The property was built in 1984 and is currently undergoing a rebranding and renovation that includes upgrades to the common areas, lobby, façade and exterior areas. Three fully modernized elevators, new chillers and BAS systems were installed in 2017. The property is currently 91% leased to 33 tenants.
The JLL Capital Markets team representing the borrower was led by Senior Director Michael Johnson and Managing Director Kevin McConn.
“Despite some challenging market conditions, lenders were excited at the opportunity to write a loan for Memorial Park Place given the assets ideal proximity to high-end neighborhoods and Memorial Park, boutique profile and diverse rent roll with the average tenant size being less than 2,250 square feet, which mitigates rollover risk from any single tenant,” Johnson noted. “TIAA Commercial Finance gave our client a great execution and demonstrated that lenders are still willing to lean into Houston office if the key fundamentals underpinning the deal are right.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
About Gupta Partners
Gupta Partners is a private family owned real estate investment firm with commercial real estate holdings in numerous states including assets in Texas and Michigan.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
