April 27, 2011
By Allison Landa, News Editor
Jones Lang La Salle’s Capital Markets team has secured a $42 million senior mortgage loan to finance 919 Milam in Houston. The mortgage, which was procured on behalf of M-M Properties, is comprised of $35 million in intial funding and up to $7 million for tenant and capital improvements.
The 542,919-square-foot Class A office building is located in Houston’s central business district. It occupies an entire city block bound by Travis, Walker, Milam and McKinney streets.
According to JLL co-head of the real estate investment banking team Mike Melody, the building’s nearly 80 percent occupancy rate offers M-M a value-add opportunity to increase tenancy along with capitalizing on in-place rents that are below market rates. He added that many U.S.-based opportunistic lenders showed interest.
Melody, along with Tom Fish and Paul House, led the JLL team on the transaction.