Total square feet: 82,061 SF
W Jefferson Street
Cockrell Hill, Texas 75211
Plaza Del Oro (PDO), a new construction 83,400 square foot neighborhood retail shopping center located in a predominately Hispanic area of Dallas County. PDO is situated on approximately 9 acres.
Plaza Del Oro had a total project budget of $12,910,000 or $154.80 per square foot. Panther provided $1,560,000 of the required equity. This investment qualified for Federal New Market Tax Credits to encourage new development in lower income areas. This enabled Wachovia Bank to provide an A Tranche loan in the approximate amount of $8,960,000 at market rates and a B Tranche loan in the approximate amount of $2,000,000 at 0.5% interest. In addition, the B loan is effectively fully amortized at the end of the seventh year by applying a heavy annual discount rate to the payoff calculation. The loans have a term of 7 years. The loans were guaranteed by the sponsor with Panther waiving liability for their repayment. The projected hold period was originally proposed for 3 years.
EXECUTION AND SALE
The sale of our Plaza Del Oro retail center was completed and funded on Friday, January 22, 2016. This succeeded in spite of numerous, complex facets to the investment including a New Market Tax Credit note, bankruptcy dealings with the lead lender (inherited by purchase of the originating bank entity), and fractured ownership of the primary center.
While not achieving the underwritten annual return to the individual investor, the transaction returned 100% of invested equity with an annual average return on invested equity over seven years of approximately 10%.