Real estate firm secures $30M in financing for OKC 577 project

From the Journal Record

OKLAHOMA CITY – A California-headquartered commercial real estate firm this week announced the arrangement of $29.9 million in construction financing for the development of a speculative industrial property in south Oklahoma City.

Institutional Property Advisors, a division of Marcus & Millichap, which specializes in capital market services for major private and institutional clients, worked on behalf of two large Oklahoma City-based commercial real estate firms, Gardner Tanenbaum and Robinson Park Investments.

Todd McNeill and Sunny Sajani, both Dallas-based IPA Capital Markets executive managing directors, secured the deal, a five-year, 77% loan-to-cost bank financing at the prime rate minus 1.75% floating for the first two years, with a 6% fixed rate in years three through five.

The financing includes two years of interest only followed by a 30-year amortization, according to a release.

The property is located in OKC 577 business park, which encompasses 581 acres with a future build-out of 7.2 million square feet that includes corporate headquarters, 45,000 square feet of retail space, distribution centers and manufacturing uses.

OKC 577 will be the largest industrial business park in the city. The $1 billion development is led by Richard Tanenbaum and Mark Beffort, CEOs of Gardner Tanenbaum Holdings and Robinson Park Investments, respectively.

The development is located between two major assets to Oklahoma City’s ecosystem: Tinker Air Force Base, which generates more than $4 billion in annual economic impact, and the 211,000-square-foot Convergence tower, currently under construction.

Richard Tanenbaum, CEO of Gardner Tanenbaum, said the IPA Capital Markets team provided multiple term sheets and creative options despite instability in the current debt climate.

“We are pleased to have secured 77% loan-to-cost construction financing on another trophy project for two best-in-class developers in Gardner Tanenbaum and Robinson Park,” McNeill said. “It was a great partnership between all parties, including the lender who navigated through a volatile period in the market to get the deal done.”