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Financial package is all wrapped up now.

Financial Package Is All Wrapped Up Now

The investment group that bought One Financial Centre back in December has obtained $4 million in permanent financing for the 125,000-SF office building.

Southern Farm Bureau Life Insurance Co. in Jackson, Miss., is providing a 10-year balloon note that replaces $3.4 million of interim funding through One National Bank in Little Rock.

One Financial Centre Ltd. bought the property for about $4.5 million from John Hancock Properties - the insurance company's real estate arm.

Sam Winstead, co-chairperson of Sheffield Nelson's gubernatorial campaign, leads the investment group that includes other members of the Winstead clan: Neal, Brian, Susan and Rosalinda. Ownership of the property has since been transferred to Winstead Ltd., made up of the same family members.

Was it tough locating permanent financing on the project, given the past real estate writedowns in the region?

"As a matter of fact, no," Winstead reports. "That's essentially a non-recourse loan with a five-year master lease on 10,000 SF at $12.50 per SF, which declines 20 percent annually, and that space is currently subleased."

Overall occupancy at the 10-year-old development is above 96 percent. The current annual cash flow from rents is $993,000. Provided no tenants drop out, that figure will hit $1.2 million in April 1991 when Sunmark's lease payments kick in.

Sunmark Companies Inc., has enjoyed a free ride for sometime now since it opened shop in 1987, but with a rate of $15.59 per SF, the annual lease will bring it into line over the next five years. Sunmark is the largest tenant at One Financial Centre, occupying more than 14,000 SF.

John Hancock bought One Financial Centre for about $2.6 million in July 1981. The company listed the building for $6 million last year and had a deal with North American Multicapital of Totowa, N.J., that fell apart before Winstead stepped up to the plate.

PHOTO : BUILDING BLOCKS: A 5,320-SF day-care facility dubbed The Children's Center is under construction next door to Southwest Hospital. Lynda Laman and Lundy Colvert are the owners of this $378,000 development financed by Twin City Bank. Laman and Colvert also own Building Specialists Inc., the building contractor. The project, licensed for 112 children, is slated for completion by Oct. 1. Richard Bowen is the architect.
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Title Annotation:Real Deal$; One Financial Centre Ltd. obtains financing for its office building
Publication:Arkansas Business
Date:Aug 13, 1990
Previous Article:McClellan Manor sold.
Next Article:The bank that thinks it can.

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