$110M Financing Deal Closes for Louisville Office Portfolio
- May 29, 2008
A financing package valued at $109.5 million has been put in place for a 13-property office portfolio in metropolitan Louisville, Ky. CBRE Capital Markets orchestrated the deal on behalf of borrower Fenley Real Estate. Fenley was able to walk away with first mortgage financing in the form of an on-book loan at a three-year fixed-rate from GE Real Estate. Encompassing 923,000 square feet of Class A office space, the portfolio features 11 buildings in suburban Louisville and an additional two buildings in the city’s Central Business District. A total of 100 tenants–some with Fortune 500 status–make their home at the properties, which have an average occupancy level of 88 percent. Given the currently unfriendly lending market, CBRE Capital Markets’ orchestration of the financing was no small feat. “Obviously it is a challenging environment, but deals involving good, solid properties with good sponsorship are still getting done,” Jeremy Chism, vice president in the investment sales and mortgage banking services firm’s Memphis office, told CPN today. While the quality of the assets was a likely factor in the lender’s decision, solid market conditions probably played a role, too. “The Louisville office market has seen positive absorption of 1 million square feet over the last five quarters,” Chism added. “Louisville is bucking the trend compared to other national markets.” Headquartered in Louisville, Fenley holds the distinction of being the largest owner of Class A corporate office space in Kentucky.