March – Briefs/Finance

Winthrop Realty Trust’s Times Square Venture Completes $815M Refi; HFF Secures $106M for Thanksgiving Tower; Cassidy Turley Arranges $100M for Suburban DC Office; Stockholders Approve ARCP-Cole Merger; Steadfast Launches New Apartment REIT; TripAdvisor Build-to-Suit Moves Forward, Thanks to $85M Loan; Mesa West Provides $220M to Refi Burbank Development; Greystone Closes $55M for Skilled Nursing Acquisition; JLL Secures $186M for East-Coast Hospitality Portfolio.

Winthrop Realty Trust’s Times Square Venture Completes $815M Refi

MARRIOTT INTERNATIONAL, INC.The development venture that bought 701 Seventh Ave. in Manhattan’s Times Square in October 2012 has completed an $815 million refinance of its previous indebtedness. Winthrop Realty Trust holds a preferred equity interest in the venture. The project, whose backers also include The Witkoff Group and New Valley L.L.C., will consist of a 452-room hotel and 80,000 square feet of retail space. Known as Manhattan EDITION, the asset is one of several EDITION properties that will open worldwide over the next few years.  

HFF Secures $106M for Thanksgiving Tower

HFF has announced details on financing arranged for Woods Capital Management’s acquisition of Thanksgiving Tower in Dallas. The $105.8 million floating-rate loan was provided by Ares Commercial Real Estate Corp. Proceeds will be used to fund a capital improvement program aimed at upgrading the tower’s infrastructure and amenities. The 1.4 million-square-foot, 50-story trophy tower is 74 percent leased to a diverse tenant roster including Santander Consumer USA, Gardere Wynne Sewell, Looper Reed McGraw and Petro Hunt.

Cassidy Turley Arranges $100M for Suburban DC Office

A cool $100 million in financing has been arranged for National Gateway I and II, twin office properties totaling 437,400 square feet in Arlington, Va.  Commercial real estate services firm Cassidy Turley orchestrated the transaction on behalf of The Meridian Group, owner and developer of the four-year-old property. Carrying the addresses of 3500 and 3550 S. Clark St., the two nine-story National Gateway buildings sit within the 4.5 million-square-foot Potomac Yard mixed-use destination in Arlington’s Crystal City submarket. Meridian built the LEED Gold-certified office complex with the assistance of a $112 million construction loan secured in 2006. Back then, Corus Bank provided the funds; this time around, a national debt fund came through with financing.

Stockholders Approve ARCP-Cole Merger

Stockholders of American Realty Capital Partners and Cole Real Estate Investments have approved the merger that creates the world’s largest net-lease REIT, with an enterprise value of $21.5 billion. Approximately 98.2 percent of ARCP’s shares and 94.9 percent of Cole’s shares voted in favor. A report released earlier this month by Green Street Advisors notes that the net-lease REIT sector has grown enormously (to the point that it’s about the same size as the industrial, lodging or self-storage REIT sectors) and that institutional investors have become more active with net-lease REITs.

Steadfast Launches New Apartment REIT

Fresh off the success of its first multi-family REIT, Steadfast REIT Investments L.L.C. is launching its second, Steadfast Apartment REIT Inc., and beginning an initial public offering of $1.1 billion in common stock for the new REIT. Steadfast Apartment REIT Inc. is offering as much as $1 billion in shares of its common stock for sale at $15 per share and as much as an additional $100 million in shares of its common stock under its distribution reinvestment plan at $14.25 per share. The entity will focus on properties located in the central and southern United States, though the newest REIT will have a stronger value-add focus than its predecessor.

TripAdvisor Build-to-Suit Moves Forward, Thanks to $85M Loan

Normandy Real Estate Partners and Greenfield Partners are set to move forward with TripAdvisors’ built-to-suit corporate headquarters in Needham, Mass., thanks to an $85 million construction loan. HFF arranged the financing, which will be provided by RBS Citizens and People’s United Bank. The 280,000-square-foot, LEED Gold office building is due for completion in 2015. Needham is located about eight miles west of downtown Boston.

Mesa West Provides $220M to Refi Burbank Development

Citing the property’s quality and strong leasing record over the past year, Mesa West Capital provided a $220 million loan to refinance The Pointe, a 14-story, 480,000-square-foot Class A building in the Los Angeles suburb of Burbank. The financing included $35 million of mezzanine debt, which was placed at closing with Morgan Stanley Real Estate Investing. The LEED Gold-certified building at 2900 W. Alameda Blvd. is owned by a joint venture of affiliates of Stockbridge Capital Group, Worthe Real Estate Group and M. David Paul & Associates. Opened in July 2009, the property is 69 percent leased to tenants including Warner Bros., FremantleMedia North America, Legendary Entertainment, KCET and Fidelity Investments.

Greystone Closes $55M for Skilled Nursing Acquisition

Greystone has closed a $54.5 million bridge loan for SentosaCare’s acquisition of The Hamptons Center for Rehabilitation and Nursing in Southampton, N.Y. The property is a 280-bed skilled nursing facility that is currently 96.8 percent occupied. The interest-only bridge loan, closed by Greystone in 90 days, is the latest of multiple loans that Greystone has secured on behalf of SentosaCare over the past decade.

JLL Secures $186M for East-Coast Hospitality Portfolio

Jones Lang LaSalle has secured $186 million in acquisition financing for a 15-property East Coast select-service hotel portfolio on behalf of Blackstone Real Estate Advisors. Deutsche Bank provided the five-year, floating-rate loan. The portfolio features 1,642 keys that are located in Pennsylvania, New York, North Carolina, New Jersey, Rhode Island, Connecticut and Delaware.