TRADEMARK JV ACQUIRES WATTERS CREEK NOTE AND SIGNS Z GALLERIE
Joint Venture acquires loan, restructures ownership and executes new leases
FORT WORTH, Texas (November 30, 2012) – A joint venture of Trademark Property Co., the Fort Worth-based retail and mixed-use development, investment and services firm, Coventry Real Estate Advisors, a New York–based real estate investment manager, Southern Land Co., a Tennessee-based multi-faceted real estate developer, and Los Angeles-based PCCP, an integrated real estate finance and investment management firm, today announced the recapitalization of the Class A mixed-use project, Watters Creek at Montgomery Farm, located just north of Dallas in Allen, Texas.
The Joint Venture acquired the note on the property from a multi-bank syndicate led by PNC Bank. PCCP provided the capital for the transaction from its opportunistic fund, PCCP Equity VI, L.P., which targets high quality real estate with distressed capital structures that need the workout expertise combined with fresh equity capital that PCCP can bring.
“Coventry is pleased to announce the recapitalization of Watters Creek and the addition of PCCP to the partnership,” said Coventry Principal Brian Moss. “The recapitalization allowed ownership to take advantage of the opportunity to purchase the existing loan at a discount and to provide additional capital for future improvements.”
The restructuring provides ownership the time and flexibility to allow for Watters Creek to reach its full potential over the next few years. Plans include the immediate execution of more than 25,000 square feet of new leases and the implementation of a wide range of property improvements.
Watters Creek is a 706,000 sf Class A mixed-use development consisting of 100,000 sf of office, 356,000 sf of retail and the 233-unit Lofts at Watters Creek multi-family apartments. Located at Bethany Drive and U.S. 75 in Allen, the project was developed and capitalized by Trademark, Coventry and Southern Land and opened in 2008.
“Watters Creek is a beautiful property that was well conceived and executed,” said PCCP Senior Vice President Jim Galovan. “Despite difficult market conditions, the property has continued to improve and attract quality tenants and residents. We look forward to joining the existing team and working towards taking the asset to the next level with fresh capital, new tenants, new plans to improve the property and a long-term view of creating value.”
“We are pleased to bring in PCCP to help recapitalize this landmark mixed-use asset,” said Trademark Chairman and CEO Terry Montesi. “The project has stable long-term ownership and we are excited to be able to complete the original vision we had for Watters Creek. Guests will soon enjoy new amenities and services, and will see improvements such as an LED billboard and site sign on U.S. 75.”
Trademark also announced new leases with Z Gallerie (8,500 sf), Texas Health Resources (6,000 sf), as well as over 10,000 square feet of additional tenants to be announced shortly, with plans to aggressively seek other quality tenants. Additional improvements under consideration include “build to suit” office space, a children’s play area, new shade structures and other property enhancements. Discussions are also underway with a hotel group, townhome developers and additional retail anchors. Ownership is also considering building additional multi-family units on the southern end of the property.
Trademark Property Company is an operator, investor and developer of enclosed regional malls, mixed-use town centers, and specialty, community and power centers. Since 1991, Trademark has invested in, or developed, over 10 million square feet of retail and mixed-use assets worth over $1 billion. Based in Fort Worth, Texas, Trademark’s experienced team currently operates more than five million square feet including Alliance Town Center (Fort Worth, Texas), Watters Creek (Allen, Texas), Market Street – The Woodlands (Texas), La Palmera (Corpus Christi, Texas) and Saddle Creek (Memphis, Tenn.). For more information, visit www.trademarkproperty.com.
PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has over $6 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco, Sacramento and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. PCCP has invested more than $6.5 billion throughout the United States and continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com.
ABOUT COVENTRY REAL ESTATE ADVISORS
Coventry Real Estate Advisors is a leading real estate investment manager offering a broad array of services to institutional investors seeking superior risk-adjusted returns in the value-added retail/mixed-use property sector. Since 1998, Coventry has invested nearly $3 billion throughout the United States through a series of three institutional funds and developed a successful track record of identifying and capitalizing on unique opportunities in the retail/mixed use sector.www.coventryadvisors.com
ABOUT SOUTHERN LAND COMPANY
For more than 20 years, Southern Land Company has been pursuing the development of dynamic neighborhoods as a national mixed-use developer with expertise in the creation, design, and construction of single family, retail, commercial, and multi-family communities.www.southernland.com