April – Briefs/Finance

NorthMarq Arranges $200M for Carl Berg; HFF Closes $361M for Chicago Office Acquisition; Canyon Finances $55M for San Antonio Retail Development; Google Capital Puts $50M into Auction.com; Alexander’s Completes $300M Refinance in NYC; Prudential Achieves Highest Production Year on Record; Greystar Secures $64.5M for Affordable Housing in Jersey City; CWCapital Closes Sale of $3.4B UPB Loan Portfolio.

NorthMarq Arranges $200M for Carl Berg

Briefs_FinanceBillionaire real estate investor and venture capitalist Carl Berg has an extra $200 million in his hands, courtesy of a deal orchestrated by NorthMarq Capital. The real estate financial intermediary arranged the refinancing of an unencumbered 711,000-square-foot office portfolio in California’s Silicon Valley through Prudential Mortgage Capital Co. The property encompasses Microsoft’s five-building, 500,000-square-foot campus at 1045-1085 La Avenida St. in Mountain View and a 211,000-square-foot building occupied by Apple at 10500 N. De Anza Blvd. in Cupertino.

HFF Closes $361M for Chicago Office Acquisition

HFF did double duty for 10 and 120 South Riverside Plaza, a 1.4 million-square-foot office complex in Chicago. The commercial real estate and capital markets services provider marketed the property on behalf of TIER REIT Inc. and, as it has now been revealed, orchestrated fixed-rate financing on behalf of the buyer, an affiliate of Ivanhoé Cambridge advised by Callahan Capital Properties, which shelled out $361 million to acquire the two-building asset late last year. The twin 21-story towers, located in Chicago’s coveted West Loop submarket, are LEED Gold-certified Class A buildings with a combined occupancy of roughly 90 percent and a tenant roster featuring such names as information technology firm CDW and Zurich American Insurance Co.

Canyon Finances $55M for San Antonio Retail Development

The fifth phase of the RIM power center in San Antonio will move forward now that Canyon Capital Realty Advisors has funded a $55.2 million senior construction loan for an affiliate of Thomas Land and Development L.L.C. This portion of the asset will consist of 253,606 square feet of rentable space that is already 91 percent pre-leased. RIM V, as the phase is known, is scheduled for completion in the second half of 2014. Tenants will include Hobby Lobby, PetSmart, Toby Keith’s I Love This Bar & Grill and Bowl & Barrel.

Google Capital Puts $50M into Auction.com

Auction.com has received a $50 million investment from Google Capital. As part of the investment, one representative from Google Capital will join the Auction.com board of directors and another will take a board observer position. More than $7 billion worth of commercial and residential real estate traded through Auction.com’s online marketplace in 2013. JPMorgan Securities L.L.C. served as sole private placement agent for Auction.com in conjunction with the transaction. Other strategic shareholders in Auction.com include Starwood Capital Group, Starwood Property Trust, Stone Point Capital and funds managed by affiliates of Fortress Investment Group

Alexander’s Completes $300M Refinance in NYC

Alexander’s Inc. has completed a $300 million refinancing of the office portion of 731 Lexington Ave. in Manhattan. The interest-only loan is at LIBOR plus 0.95 percent, currently 1.10 percent, and matures in March 2017. Four one-year extension options are available, and proceeds were used to repay an existing $312 million, 5.33 percent fixed-rate loan and closing costs. Alexander’s Inc. currently has six properties in the greater New York City metro area.

Prudential Achieves Highest Production Year on Record

Prudential Capital Group achieved more than $12 billion in annual originations in 2013, its highest production year on record. The group cites the low-interest-rate environment and increasing demand among European borrowers as driving forces behind the business. Prudential Capital Group has also announced that it has $12 billion to invest in 2014. As of Dec. 31, 2013, the company manages a $66 billion portfolio.

Greystar Secures $64.5M for Affordable Housing in Jersey City

Financial services and private investment group Greystone has solidified financing for Salem Lafayette Apartments in Jersey City, N.J. The $64.5 million Fannie Mae Multifamily Affordable Housing funding will go toward the acquisition and rehabilitation of the affordable housing community. The structure of the transaction was a mix of public and private funding that included tax-exempt, short-term bond financing and 4 percent LIHTC that will be used toward the acquisition and rehabilitation of the community. The 1997-built asset features 412 units.

CWCapital Closes Sale of $3.4B UPB Loan Portfolio

Back in October, CWCapital Asset Management marketed 134 assets with an unpaid principal balance of $3.4 billion. The assets consisted predominantly of real estate and non-performing commercial mortgage loans spread across the U.S. CWCapital marketed the loans through two sales platforms: those of CBRE Group Inc. and Auction.com. Fast forward to late February and the sales of 110 of the 122 assets have closed. The remaining 12 are expected to close no later than mid-March. Overall recoveries are projected to average 66 cents on the dollar of unpaid principal balance.