April – Briefs/Finance
- Mar 27, 2013
SL Green Closes $900M Refinancing for 1.8 MSF Office
New York City’s largest office landlord has refinanced its 1.8 million-square-foot office building at 1515 Broadway to the tune of $900 million. The 12-year first mortgage refinancing comes less than a year after SL Green completed a $775 million, seven-year refinancing deal for the fully leased high-rise.
The new loan, featuring a fixed rate of 3.93 percent, allowed SL Green to replace the previous loan and gave the REIT a little extra pocket change–$116 million in net proceeds, to be exact. The 54-story tower in Times Square has been part of the SL Green portfolio since 2002, when the company joined forces with Canada’s SITQ Immobilier to purchase the asset for $480 million. The partners later submitted the property to a $40 million repositioning program.
HFF Arranges $74M Denver Office Refi
Holliday Fenoglio Fowler L.P. has arranged a $74 million loan for the refinancing of 1400 Wewatta and 1401 Wynkoop, two contiguous Class A office buildings totaling approximately 300,000 square feet in downtown Denver. The borrower was Wewatta and Wynkoop PT L.L.C., a GE Asset Management and Crestone Partners managed entity. The permanent loan was secured through a national life insurance company correspondent lender. The two properties are connected via a skybridge and share a 468-space parking garage. Tenants include Chipotle Mexican Grill Inc.’sworld headquarters; Kilpatrick, Townsend & Stockton L.L.C.; Dorsey & Whitney L.L.P.’ Milliman; and George K. Baum & Co.
Mesa West Funds $95M D.C. Office Refi
Mesa West Capital has provided Brookfield Real Estate Opportunity Fund I with a $95.5 million first mortgage loan on 65 New York Ave., a 355,000-square-foot office building in Washington, D.C. The asset was built in 1924 as a warehouse and was converted into Class A office space in 2010. Brookfield acquired the property in 2005, and has since improved tenant spaces, common areas and building systems. 65 New York Ave. has received an Energy Star label every year since 2009, and was awarded LEED Gold certification in 2011. The building is currently 45 percent occupied by the District of Columbia, and Brookfield is actively marketing the remaining space.
MEPT Obtains $105M for Chicago’s 200 W. Madison
More than a year after paying $217.5 million in cash for 200 W. Madison, a Class A office tower in Chicago’s West Loop, Multi-Employer Property Trust has taken out a $105 million mortgage on the 928,040-square-foot property. Prudential Mortgage Capital Co. provided the 10-year, fixed-rate loan for MEPT, which acquired 200 W. Madison in September 2011 from a joint venture of Tishman Speyer, Pearlmark Real Estate Advisors L.L.C. and a major U.S. pension plan.
Vornado Completes $390M Financing on 666 Fifth Ave.
Vornado Realty Trust has completed a $390 million financing of its retail condominium located at 666 Fifth Ave. at 53rd Street in Manhattan. The asset was acquired in December 2012. The 10-year loan is interest only at 3.61 percent. Net proceeds from the financing were approximately $387 million. The retail condo features the Uniqlo flagship store, as well as space leased by Hollister and Swatch. Vornado also owns one-half of the office building above.
C&W Arranges $79M for Charlotte-Area Industrial Portfolio
The Keith Corporation Portfolio, a 1.9 million-square-foot collection of Class A industrial assets in and around metropolitan Charlotte, N.C., has been snapped up by a joint venture with the assistance of $78.5 million in acquisition financing orchestrated by Cushman & Wakefield Inc. The group of buyers–consisting of Schmier & Feurring Properties Inc., L&J Schmier Management and Investment Co. and Independencia Asset Management L.L.C.–purchased the 10 assets from The Keith Corp.
Chesapeake Lodging Trust Closes $32M Mortgage Loan
Chesapeake Lodging Trust has closed on a $32 million fixed-rate mortgage loan. The loan is secured by the 188-room Hilton Checkers Los Angeles. The 10-year loan was provided by Goldman Sachs Mortgage Co. and carries a fixed interest rate of 4.11 percent per annum. Principal and interest are based on a 30-year amortization. Proceeds will be used to invest in future hotel acquisitions and for general corporate purposes.
PREIT Improves Terms of $146M in Mortgages
Pennsylvania Real Estate Investment Trust has amended terms of its mortgage loans on three Pennsylvania malls. The company refinanced the mortgages on Lyncoming Mall, Viewpoint Mall and Francis Scott Key Mall for an aggregate amount of $146.1 million at an average interest rate of 3.91 percent for five years. The trio of transactions generated excess proceeds of approximately $9.7 million and reduced average interest rates by 172 basis points. The three malls comprise 2.2 million square feet of space in total.