Commerical Property News - CPN Online 3-31-08

GE Real Estate has announced it has provided a $71.4 million loan to Chase Merritt for the acquisition and renovation of Four Corners, a class B-plus office property located across from the Galleria regional shopping center in Houston, Texas. The deal includes an initial funding of $49 million, a CapEx holdback of $5.68 million that Chase Merritt will use for extensive building and structures rehabs as well as landscaping enhancements, an $11.15 million holdback for tenant improvements and leasing commissions to address the lease up of vacant space and tenant roll during the loan term, and an earnout of $5.56 million. The asset consists of two high-rise office buildings with 395,000 square feet of rental space, two parking structures, and two low-rise retail buildings with a combined 29,000 square feet of space. This is the second transaction between GE Real Estate and Chase Merritt in Houston’s Galleria West Loop submarket within the last six months.