July – Briefs/Finance

Big CMBS Play Will Put KeyBank into Top Tier of Servicers; Silverstein Secures $660M for Manhattan Development; CBRE/New England Lands $60M for Shopping Center; Inland Forms $600M Retail JV with PGGM; Retail Properties of America Closes $1B Facility; Chesapeake Lodging Trust Closes $60M for Boston Hotel; Prudential Provides $160M for Two NYC Apartments; Oak Grove Lands $37M for Florida Affordable Housing.

Big CMBS Play Will Put KeyBank into Top Tier of Servicers

KeyBank Real Estate Capital has entered into a series of agreements that will make it the nation’s third-largest named servicer of commercial/multi-family loans, with a commercial mortgage servicing portfolio of approximately $205 billion. The first part of the deal involves KeyBank purchasing certain commercial mortgage servicing rights from Bank of America, which as of the end of March had a total commercial mortgage servicing portfolio of about $110.5 billion. The transaction also includes a CMBS special servicing portfolio of about $14 billion.

Simultaneously, KeyBank entered into a long-term sub-servicing agreement with Berkadia Commercial Mortgage L.L.C. under which Berkadia will act as sub-servicer on all CMBS primary servicing acquired from Bank of America. And in connection with that deal, KeyBank has agreed to acquire Berkadia’s CMBS special servicing business. On a pro forma basis, after both agreements are closed, KeyBank will be named special servicer on approximately $47 billion worth of CMBS, making it the fifth-largest CMBS special servicer.

Silverstein Secures $660M for Manhattan Development

Backed by a $660 million loan from a London-based investment fund, Silverstein Properties Inc. will begin construction this fall on a $950 million, 82-story skyscraper in Downtown Manhattan that will comprise a 185-room Four Seasons hotel and 157 luxury condos. At 926 feet, it will be the tallest residential building in Downtown Manhattan and one of the tallest buildings in New York. Located at Park Place and Church Street in Tribeca, 30 Park Place is expected to open by 2016. The site was formerly known as 99 Church and served as Moody’s headquarters. Silverstein Properties Inc. and the California State Teachers’ Retirement System (CalSTRS) bought the asset from Moody’s in 2007.

CBRE/New England Lands $60M for Shopping Center

CBRE/New England’s Debt & Equity Finance team has secured first mortgage financing from Jefferies LoanCore totaling $60 million for The Launch at Hingham Shipyard, a 246,000-square-foot transit-oriented waterfront shopping center located in Hingham, Mass. The property’s owner, Samuels & Associates, opened the first phase of the center in 2010. Upon completion, The Launch at Hingham Shipyard will encompass 217,083 square feet of retail, 28,682 square feet of office space and 94 condominiums. Anchor tenants include Fresh Market, Old Navy, Bed Bath & Beyond, Patriot Cinemas and a Trader Joe’s that is currently under construction.

Inland Forms $600M Retail JV with PGGM

IAGM Retail Fund I Member L.L.C., a wholly owned subsidiary of Inland American Real Estate Trust Inc., has formed a new retail joint venture with PGGM Private Real Estate Fund. The venture will focus on investing in stabilized multi-tenant shopping centers in Texas and Oklahoma. The total levered enterprise value of the new joint venture is expected to exceed $600 million, of which Inland American will have a majority equity stake of 55 percent. Simultaneous with the closing of the new joint venture, PGGM contributed approximately $79.4M of equity, while Inland American contributed a portfolio of 13 stabilized necessity-based retail assets located in Houston, Dallas, San Antonio and Oklahoma City that total approximately 2.3 million square feet.

Retail Properties of America Closes $1B Facility

Retail Properties of America has increased the total capacity of its credit facility by $350 million. The amended and restated facility now comprises a $450 million unsecured term loan and a $550 million unsecured revolver. The maturity dates were extended by more than two years to May 2018 for the unsecured term loan, and to May 2017 for the unsecured revolver. The current rate on the unsecured revolver decreased 50 basis points to LIBOR plus 1.5 percent per annum, while the interest rate on the unsecured loan decreased 55 basis points to LIBOR plus 1.45 percent per annum. Also included in the new terms is an accordion feature that allows Retail Properties of America to increase the facility up to $1.45 billion, subject to certain conditions.

Chesapeake Lodging Trust Closes $60M for Boston Hotel

Chesapeake Lodging Trust has closed on a $60 million fixed-rate mortgage loan that is secured by the 430-room Boston Marriott Newton. The seven-year loan was provided by PNC Bank N.A. and carries a fixed interest rate of 3.63 percent per year, with principal and interest payments based on a 25-year principal amortization. Proceeds will be used to invest in future acquisitions of hotels and for general corporate purposes.

Prudential Provides $160M for Two NYC Apartments

Prudential Mortgage Capital Co. has provided $160.4 million in acquisition financing for two apartment towers in the Riverside South neighborhood of Manhattan’s Upper West Side. The financing was provided in a single transaction for The Aldyn and The Ashley, which are adjoining properties on Riverside Boulevard between 62nd and 63rd streets. The borrower, an affiliate of Boston-based GID, used the loan proceeds to purchase the assets. Holliday Fenoglio Fowler L.P. served as broker in the transaction.

Oak Grove Lands $37M for Florida Affordable Housing

Oak Grove Capital has originated two HUD 223(f) loans that total $37.1 million. The funds were provided to Cornerstone Group and used to refinance Mission Point and Indian Trace, two affordable housing communities on Florida’s east coast. Each of the two fixed-rate loans carries a 35-year term and amortization period. Indian Trace, a 330-unit asset located in Riviera Beach, Fla., received $20.8 million of the financing. The remaining $16.4 million was used for Mission Pointe, a 388-unit community located in Jacksonville, Fla.