The public non-traded REIT formerly known as Behringer Harvard REIT I Inc. entered into an amended credit agreement through its operating partnership, according to a recent filing.
Tier Operating Partnership LP, the operating partnership of Tier REIT, amended its credit agreement with Wells Fargo providing it access to a senior secured credit facility with financing ability up to $475 million.
The amendment serves to clarify how maximum loan availability is calculated. Before collateral could be released, outstanding borrowings are reviewed and limited to the lesser of 65% of the aggregate value of all properties securing the facility based on as-is appraisals and a debt service coverage amount with no more than 30% of availability credited to any secured pool of properties.
Tier REIT owns commercial office properties throughout 19 cities in the U.S. that contain about 15 million square feet of space. According to MTS Research Advisors, the REIT’s invested assets were valued at over $3.4 billion at the end of September 2014.