July – Briefs/Finance

JLL Secures $333M for Zurich North America’s HQ; Meridian Arranges $142M for 2 MSF Detroit-Area Office Complex; Consultatio Lands $332M for Miami Condo Development; PCCP Provides $98M Construction Loan for Suburban Boston M-F; Walker & Dunlop Secures $278M Credit Facility for Milestone M-F Portfolio; Calvin Cafritz Lands $61M for DC Apartment Project; SL Green Completes $1.45B Refinancing; NorthView Student Housing receives $58M in Funds for UCF Development.

JLL Secures $333M for Zurich North America’s HQ

0714_Briefs_Finance_ZurichThe largest built-to-suit, single-tenant net-leased project in North America this year is coming to suburban Chicago, thanks to $333 million in financing arranged by JLL. The credit tenant lease (CTL) financing will be used for the acquisition of 40 acres of land and the development of the 750,000-square-foot Class A office development in Schaumburg, Ill., for insurance company Zurich North America. Stonemont Financial Group of Atlanta is the landlord, while Clayco is the developer, designer and builder. Goettsch Partners is designing the headquarters core and shell, along with the parking facility. The Chicago office of CannonDesign is the interior architect.

Meridian Arranges $142M for 2 MSF Detroit-Area Office Complex

New York’s Meridian Capital Group L.L.C. has arranged a $142 million mortgage on behalf of 601 West Cos., also of New York, for the latter’s purchase of Southfield Town Center in Southfield, Mich. The 10-year loan features three years of interest-only payments and was provided by a CMBS lender. The transaction was arranged by Meridian managing director Rael Gervis. Southfield Town Center is a 2.1 million-square-foot property composed of five office towers and a retail pavilion and is 67 percent leased. It features more than 93,000 square feet of concourse space and amenities such as convenience retail, food services, a fitness facility and the Skyline Club, an executive dining club. There is also an on-site hotel, the 388-room Westin Southfield, which has a restaurant, banquet facilities and a health club.

Consultatio Lands $332M for Miami Condo Development

Argentina-based Consultatio has secured a $332 million loan from several banks led by HSBC Holdings PLC to move forward with the ultra-luxurious Oceana Bal Harbour development in Miami’s Bal Harbour neighborhood. The loan is the largest for a residential project since the 2008 financial downturn and the second U.S. project for Consultatio President & Senior Partner Eduardo Costantini. The first project, the 142-unit Oceana Key Biscayne condominium development, is expected to open in July and is more than 90 percent sold. Homes at the 28-story, 240-unit Oceana Bal Harbour are selling for $3 million to $30 million, or $1,875 per square foot on average. More than $390 million worth of contracts have been signed, with more than $470 million in commitments, including reservations. Total sales for the project are expected to range between $1.2 billion and $1.3 billion.

PCCP Provides $98M Construction Loan for Suburban Boston M-F

PCCP L.L.C. has provided a $98 million loan to finance Northland Investment Corp.’s 269-unit, Class A development located nine miles west of Boston, in Waltham, Mass. The new community, which resides at the intersection of Moody and Main streets, will also include 27,596 square feet of ground-floor retail space. The multi-family component comprises three five-story buildings with 242 market-rate units and 27 affordable units, as well as 392 below- and at-grade parking spaces. With demo work currently underway, the final completion is slated for mid-2016, though the first apartments will be available for occupancy in the summer of 2015.

Walker & Dunlop Secures $278M Credit Facility for Milestone M-F Portfolio

Walker & Dunlop has provided a $278 million Fannie Mae credit facility to Milestone Apartments REIT, which is using part of the proceeds to fund two multi-family acquisitions totaling $78.3 million. Led by Andrew Tapley, the Walker & Dunlop team structured the financing with full-term interest only. The facility consists of a mix of fixed- and variable-rate notes with staggered maturities, collateralized by 20 multi-family properties in Arizona, Florida, Georgia, Tennessee and Texas. The Bethesda, Md.-based commercial real estate financing company structured the original facility for Milestone, a REIT with corporate offices in New York and Dallas that trades on the Toronto Stock Exchange, in 2005 and added assets to it in 2008. It was due to mature on April 1, 2015.

Calvin Cafritz Lands $61M for DC Apartment Project

With the assistance of commercial real estate services firm Cassidy Turley, Calvin Cafritz Enterprises has secured $60.5 million in financing for the development of 5333 Connecticut Ave., a 263-unit luxury apartment community in the Chevy Chase neighborhood of Washington, D.C. Designed by Eric Colbert & Associates P.C., the nine-story structure will sprout up on a 16,230-square-foot site that Calvin Cafritz amassed roughly two decades ago. There was strong competition among both banks and insurance companies to provide the financing, as 5333 Connecticut is a project with characteristics that lenders find hard to resist. There aren’t many brand-new apartment buildings in the immediate area, and on a larger scale, Washington, D.C., has strong population growth and an enviable unemployment rate of 4.9 percent.

SL Green Completes $1.45B Refinancing

SL Green Realty Corp. has refinanced 388-390 Greenwich St. in Manhattan with a new seven-year, $1.4 billion mortgage provided by a lending group led by Citigroup. Also included were Bank of China, Wells Fargo and Barclays. The loan bears interest at LIBOR plus 1.7 percent and features an initial four-year term and three one-year as-of-right extension options. The refinancing replaces a former $1.1 billion financing, and follows the December 2013 triple-net-lease renewal by an affiliate of Citigroup Inc. of the entire 2.6 million-square-foot tower.

NorthView Student Housing receives $58M in Funds for UCF Development

NorthMarq Capital’s Florida-based offices have arranged $58 million in financing for NorthView Student Housing, located on the University of Central Florida campus in Oviedo, Fla. The seven-story, 340,271-square-foot property was developed by Alan Ginsburg and the AHG Group, and contains 600 beds within 180 units and 782 parking spaces. The development also includes 40,000 square feet of faith-based commercial space. Half is occupied by the Hillel Foundation for Jewish Campus Life and the other half by the Newman Catholic Student Center. The property is managed by the UCF Housing System and is incorporated into its inventory. The property benefits from a 60-year ground lease, after which the improvements will revert to the UCF Foundation and Hillel Foundation for Jewish Campus Life.