Houston-based Hartman Income REIT has completed a $67.6 million facility with an affiliate of J.P. Morgan with the dual intent of consolidating debt while taking advantage of a weakened real estate market for more acquisitions. \u201cWe are very gratified to have this transaction go through given the state of the current economic environment,\u201d firm president Al Hartman (pictured) told CPN. \u201cIt is a testament to the solidity and stability of Hartman Income REIT to close on a transaction of this size.\u201d The debt was structured by Tom Melody and Bernard Branca of CBRE | Melody on behalf of the commercial property REIT operating through its subsidiary Hartman Income REIT Property Holdings L.L.C. The loan is a non-recourse loan secured by the borrower\u2019s 12 commercial real estate properties located in Houston, Dallas and San Antonio. \u201cThe funding is helpful because it consolidates a number of loans that were outstanding, simplifying the loan structure of the company while also giving us capital to candidly take advantage of the weakened economic conditions,\u201d Hartman said. The loan proceeds will be used to refinance substantially all of the existing credit facilities of the company and its subsidiaries, fund the redemption of non-accredited investors in connection with the April 1 formation transactions of the company, and to provide additional working capital, according to company information. The company has a successful track record of returning 16.2 percent on an annualized basis for 25 years, Hartman said. \u201cWe see the current weakness as an opportunity. Some funds will be utilized as capital to enhance shareholder value by adding to the portfolio,\u201d he added. Hartman Income REIT and its subsidiaries currently manages approximately 3.2 million square feet in Houston, Dallas and San Antonio with a mix of office buildings, flex space and retail centers. CBRE\/Melody offers placement of debt and equity finance for all major property for its clients. It is a subsidiary of CBRE Capital Markets, part of CB Richard Ellis Group Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"
Houston-based Hartman Income REIT has completed a $67.6 million facility with an affiliate of J.P. Morgan with the dual intent of consolidating debt while taking advantage of a weakened real estate market for more acquisitions. \u201cWe are very gratified to have this transaction go through given the state of the current economic environment,\u201d firm president…<\/p>\n","protected":false},"author":1314,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825],"tags":[],"class_list":["post-1003847875","post","type-post","status-publish","format-standard","hentry","category-finance"],"acf":[],"yoast_head":"\n