Developer lands $67M loan for massive $380M project
"The development group behind the massive $380 million redevelopment in downtown Dallas — called The Drever — at 1401 Elm St. has landed a nearly $67 million bridge loan, as expected, from a big capital group on the East Coast.
Real estate sources told the Dallas Business Journal a development group led by longtime developer Maxwell Drever had a loan keyed up to help financially after a lender claims the group defaulted on a $55 million loan. That lender, GCP Income Opportunities I LLC, appointed a new trustee readying the project for the Dec. 5 foreclosure auction.
The closing of the $66.7 million bridge loan, announced on Wednesday, Nov. 22, will likely grant The Drever project a stay from foreclosure auction, even though the property was already posted for foreclosure.
Robert Kline of JLL represented the borrowers, an affiliate of the Drever-led development group, in securing the loan through Starwood Property Trust (NYSE: STWD). The development group says they have other big institutional capital lined up for future financing.
"We're eager to move forward with the remainder of the project's permanent financing," said Jerry Tonn, an asset manager for Drever Capital Management, in a statement.
"Construction has continued and we are looking forward to delivering this project to Dallas in 2019," Tonn added.
The 52-story, 1.5 million-square-foot redevelopment of the former First National Bank Tower is the biggest adaptive reuse project underway in downtown Dallas. The mid-century office tower, built in 1961, qualifies for $95 million in federal and state historic tax credits.
Dallas-based Merriman Anderson/Architects Inc. is the project architect. Architectural Arts Company is the arts consultancy on the project.
Andres Construction is the general contractor for the redevelopment.
The Drever is one of the last and largest vacant buildings in downtown Dallas yet to be revitalized, said Kourtny Garrett, president and CEO of Downtown Dallas Inc.
Garrett said the city's central business district community is looking forward to seeing The Drever's impact on creating jobs and bringing energy to downtown Dallas."https://www.bizjournals.com/dallas/news/2017/11/22/its-done-developer-lands-67m-loan-for-massive-380m.html