May – Briefs/Finance

RXR, ALP Land $142M for Acquisition of Brooklyn Office Property; Mesa West Provides Brookfield with $73.5M for Office Acquisition; Meridian Arranges $200M in Financing for M-U Commercial Property in NYC; Madison International’s Fund V Closes Oversubscribed at $825M; Exeter Lands $48M Refinance for Industrial Portfolio; Becker + Becker Lands $37M for Connecticut Office-to-Apartments Rehab; Jaylor Services Gets $65M in Financing for Burger King Portfolio; HFF Secures $74M in Financing for 295 KSF Property in Coral Gables, Fla.

RXR, ALP Land $142M for Acquisition of Brooklyn Office Property

0514_Briefs_FinanceMeridian Capital Group L.L.C. has arranged a $142 million mortgage for the purchase of an office property in Brooklyn’s Fort Greene neighborhood on behalf of RXR Realty and American Landmark Properties. The 10-story, 686,000-square-foot property, at 470 Vanderbilt Ave., is 88 percent leased. It’s directly across from the Atlantic Yards project and close to Barclays Center. The five-year loan features interest-only payments for the full term and was provided by a CMBS lender. In late February, RXR paid $194.5 million, or about $300 per square foot, for the building. It was both the first building in Brooklyn to have been purchased by RXR and the company’s first New York City acquisition as part of its New York Metro Emerging Sub-Market initiative.

Mesa West Provides Brookfield with $73.5M for Office Acquisition

Mesa West Capital has provided Brookfield Asset Management with $73.5 million to acquire and reposition Rio Robles Technology Park, an eight-building office/R&D portfolio in the North San Jose submarket of the Silicon Valley. The 460,000-square-foot asset is situated on two parcels that total 30 acres. Currently, the park is 70 percent leased to a variety of tenants, including Hitachi and F5 Networks. Eastdil Secured arranged the financing.

Meridian Arranges $200M in Financing for M-U Commercial Property in NYC

Meridian Capital Group L.L.C. has arranged $200 million in acquisition financing for a mixed-use commercial building at 530 Broadway in New York on behalf of a venture led by Jeff Sutton’s Wharton Properties. The three-year financing was provided by a national-balance-sheet lender and features a competitive LIBOR-based spread and two one-year extension options. It was negotiated by Meridian managing director Ronnie Levine and vice president Tal Savariego. The 11-story, 194,500-square-foot property consists of three interconnected buildings at the corner of Broadway and Spring Street, directly across from 529 Broadway, where a venture between Wharton Properties, Aurora Capital Associates and Thor Equities is developing a 34,000-square-foot retail building.

Madison International’s Fund V Closes Oversubscribed at $825M

Madison International Realty got more than it had originally anticipated for Madison International Real Estate Liquidity Fund V L.P.  The investment vehicle—which centers on a Class A, direct secondary investment strategy in the U.S., U.K. and Western Europe—recently closed with $825 million in equity commitments, marking a notable sum above its $750 million target. The roster of investor types in Fund V is long and diverse. U.S. public pension funds contributed, as did corporate pensions, insurance companies, endowments, foundations and family offices. And they came from all corners of the world. Participating institutional investors include European institutions, Middle Eastern sovereign wealth funds, as well as institutional investors in Asia and Australia.

Exeter Lands $48M Refinance for Industrial Portfolio

Cushman & Wakefield Inc. has arranged a $48 million loan on behalf of Exeter Property Group for a six-property, 2.2 million-square-foot southern industrial portfolio. Five of the properties are in metro Atlanta and one is in Jacksonville, Fla. Massachusetts Mutual Life Insurance Co. provided the interest-only loan via Cornerstone Real Estate Advisors. The assets are 100 percent leased to six tenants, including Iron Mountain, Georgia-Pacific Corp., TOTO Americas, LTI Flexible Products, Aaron’s and Miller Zell. Exeter picked up the properties in 2013.

Becker + Becker Lands $37M for Connecticut Office-to-Apartments Rehab

Walker & Dunlop has provided a $37.2 million FHA Section 221(d) (4) financing to Becker + Becker to convert Hartford’s 777 Main St. into Class A apartments. The vacant 26-story office tower sits in Hartford’s central business district, and its rehabilitation is the centerpiece of state and local efforts to promote urban living and revitalize the downtown area. 777 Main St. was built in 1967 as the headquarters of Hartford National Bank. The asset was designed by architect Welton Becker, who also designed the iconic Capital Records tower in Hollywood.

Jaylor Services Gets $65M in Financing for Burger King Portfolio

Affiliates of Jaylor Services Inc. are set to see $65 million in financing for a 99-property Burger King portfolio located throughout six states. Acting on behalf of the borrowers, commercial real estate and capital markets services provider HFF secured a 10-year, fixed-rate, non-recourse loan through Ladder Capital. Of the 99 Burger King locations, four are in Florida, nine in Mississippi, 22 in Alabama, 57 in Louisiana, four in Missouri and three in Kansas. All properties are leased on a long-term basis to an affiliate of Strategic Restaurants, a subsidiary of Cerberus Capital Management L.P.

HFF Secures $74M in Financing for 295 KSF Property in Coral Gables, Fla.

The premier 295,000-square-foot office-and-retail property known as 4000 Ponce/The Collection Building just outside of Miami in Coral Gables, Fla., has been refinanced to the tune of $74 million. Acting on behalf of the borrowers, The Collection Properties L.L.C. and The Collection L.L.C., commercial real estate and capital markets services provider HFF closed the deal with a Europea-based insurance company. Developed in 2002 by CMC Group, the 91 percent-leased Class A asset features approximately 150,000 square feet of office space and 30,000 square feet of retail offerings and also serves as home to The Collection, one of the top luxury auto dealerships in the country. The financing for 4000 Ponce/The Collection came in the form of a 10-year, fixed-rate loan.