Marq*E Entertainment Center Collects $68M In Refinancing
Levcor Inc. secured $68M to refinance the Marq*E Entertainment Center. The non-recourse floating rate loan will provide funding to recapitalize the existing debt, as well as provide capital to continue to upgrade and improve the property, according to a release by JLL.
Built in 1999, the retail venue is 94% occupied, with Dave & Buster's, L.A. Fitness, Edwards Cinema, Chick-fil-A, Bank of America and Panda Express on the roster. The open-air theme center has proven to be more conducive to the center's target clientele than previous iterations of the retail center, per the release.
“The Marq*E center has consistently remained a stable asset and draws in crowds from across the city,” JLL Managing Director Jimmy Board said. “The property has previously been reconfigured and redeveloped to great success, and Levcor’s future plans to further enhance the site will be great for the tenants and the surrounding community.”
Board and JLL’s Tom Melody, Tom Fish and Wes Wallace represented the borrower. LoanCore provided the refinancing.
Houston's retail market remains healthy despite a slow takeoff in the first quarter of 2019, according to JLL's Q1 2019 retail report. The overall market vacancy recorded at 5.5% for the first quarter, which was well below the 10-year average of 6.2%.
A moderate number of new projects and robust job growth in Houston are expected to help maintain the current occupancy levels. Meanwhile, JLL said the cost of new construction is pushing retail rents. The average market triple-net rent rose to $17.92, up by $1.45 year over year.
The retail market has noted a decline in big-box, national brands that typically occupy larger shopping centers. Other tenants groups like junior anchors, the food and beverage sector and entertainment-based retail are picking up in popularity, per the report.
"Large, national brands are re-strategizing in the midst of the e-commerce revolution, but other, more nimble retailers are capitalizing on the opportunity to grow their footprints," JLL Senior Research Analyst Roman Rodriguez wrote in the report.
