HFF Markets $133M Loan for M-U Development in Texas

HFF has sold a $133 million non-performing loan secured by Watters Creek at Montgomery Farm, a mixed-use development in Allen, Texas, on behalf of a five-member bank group to a joint venture group led by Fort Worth-based Trademark Property Co.

HFF has sold a $133.4 million non-performing loan secured by Watters Creek at Montgomery Farm, a mixed-use development in Allen, Texas, on behalf of a five-member bank group, to a joint venture group led by Fort Worth-based Trademark Property Co.

Watters Creek at Montgomery Farm is a 700,000-square-foot, grocery-anchored, mixed-use development that features 362,436 square feet of retail space, 96,530 square feet of office space, 233 luxury multi-housing units and 15 acres of land proposed for future multi-housing development.

“It’s a very unique asset because it’s an extremely high-quality asset for the area,” Brock Cannon, HFF director, told Commercial Property Executive. “It’s a Class A core product and there weren’t very many $100 million-plus loan sale transactions in the market.”

Located on the southwest corner of U.S. 75 and Bethany Drive in Allen, Cannon said the 52-acre Watters Creek at Montgomery Farm boasts a vertically dense design and incorporates a complete mix of uses including a large creek side village green, interactive public art, a variety of retail options, restaurants featuring al fresco dining and water views, and office space and residential lofts.

“We weren’t seeing much product like this and when it came up, there was an extremely high-interest level,” Cannon said. “The issue with the property was Borders went bankrupt and vacated their significant-sized space.”

Among the retailers are Ann Taylor, Chico’s, DSW, Gymboree, Fine Cigars and Victoria’s Secret. Dining options include The Cheesecake Factory, Sublime Chocolate and Village Burger Bar.

“It’s a great area in North Dallas with a great school district,” Cannon said. “This is the first time we have worked with this particular group of investors and it’s a great property and will be a great value.”

Improvements expected include the addition of “build to suit” office space, a children’s play area, new shade structures and possibly a hotel.

The HFF team representing the bank group was led by loan sale professionals Cannon and Eric Tupler, along with investment sale professionals Doug Hazelbaker, Bill Miller and Ryan Shore.

Like us on facebook:  https://www.facebook.com/pages/Commercial-Property-Executive/258033884191