May – Briefs/Finance

Omni Obtains $250M in Financing for Three Hotels; Cassidy Turley Secures $150M for Bethesda Office Development; American Realty Capital Merger Approved; Meridian, Eastdil Arrange $275M in Financing for NYC Hotel; Maguire Recapitalizes LA Office Campus with $105M Loan; Rouse Refinances Florida Mall for $65M; CPC, Citi Announce $250M Affordable Housing Facility; Meridian Capital Arranges $128M for NYC Land Purchase.

Omni Obtains $250M in Financing for Three Hotels

Omni Fort Worth

Omni Hotels Corp. has gotten its hands on $250 million in financing for a group of three properties encompassing the Omni Fort Worth, Omni Houston and Omni Chicago. The hotel company relied on commercial real estate and capital markets service provider Holliday Fenoglio Fowler L.P. to arrange the loan, which was provided by Prudential Mortgage Capital Co.

The three properties are among the leading hotels in their markets. The 614-room Omni Fort Worth made its debut in 2009, sprouting up just across THE STREET? from the 400,000-square-foot Fort Worth Convention Center. Four hours to the south, the 378-room Omni Houston, part of Omni’s portfolio since 1992, provides 378 guestrooms in Houston’s coveted Galleria/Uptown submarket. And in the Windy City, the 347-room Omni Chicago, which was a Hyatt Regency property before Omni acquired and converted it in 1993, offers a location at the core of the Magnificent Mile.

Cassidy Turley Secures $150M for Bethesda Office Development

MRP Realty and Rockpoint Group have secured a $150 million loan for Air Rights Center, a three-building office development in Bethesda, Md., thanks to some help from Cassidy Turley, who was able to secure the loan from an undisclosed commercial bank. The project is located at the intersection of Wisconsin and Montgomery avenues and will comprise 688,717 square feet when complete. Air Rights is already 93 percent leased.

American Realty Capital Merger Approved

Stockholders have approved the previously announced merger of American Realty Capital Properties Inc. and American Realty Capital Trust III Inc. ARCP acquired ARCT III for $2.2 billion in cash and shares. With the completion of the transaction, the merged company has an enterprise value of $3 billion. The merger brings the benefits of a portfolio with longer lease durations, operating synergies, cost reductions and greater potential for raising capital, thanks to an equity market cap of $1.9 billion.

Meridian, Eastdil Arrange $275M in Financing for NYC Hotel

Meridian Capital Group L.L.C. and Eastdil Secured have negotiated $275 million in permanent financing for the $325 million acquisition of the fee position in New York City’s Milford Hotel on behalf of a partnership between David Werner and Deutsche Bank Asset & Wealth Management. The seller of the fee interest in the hotel, which is also known as the Milford Plaza Hotel, was a venture between Rockpoint Group and Highgate Holdings. The two firms had bought the entire property (the land, the hotel and a 26,000-square-foot retail condominium) in 2010 for about $200 million. Highgate will continue to manage the hotel. The retail unit is held under separate ownership.

Maguire Recapitalizes LA Office Campus with $105M Loan

Maguire Investments has recapitalized Water’s Edge, its two-building, 6.5-acre creative office campus in Los Angeles’ Playa Vista submarket, with a $105 million loan. The funds reportedly will be used for tenant improvements and for commissions for new leases on available space. The financing was arranged on Maguire’s behalf by Rob Verrone of Iron Hound Management. Current tenants include Electronic Arts, developer of such video games as Madden NFL, Battlefield and the Mass Effect series; Luxury Link, an online travel service; LA Fitness; and the X Prize Foundation.

Rouse Refinances Florida Mall for $65M

Rouse Properties Inc. has closed on a new $65 million mortgage secured by Lakeland Square Mall, a dominant shopping center along the I-4 corridor between Orlando and Tampa. The non-recourse loan bears interest at a fixed rate of 4.17 percent and matures in 10 years. The mall was previously financed with a $50.3 million mortgage loan at an interest rate of 5.12 percent, making net proceeds after closing and defeasance costs approximately $13.4 million. Rouse is currently building out a vacant anchor box that will be filled with a 12-screen Cinemark NextGen theater in late 2013.

CPC, Citi Announce $250M Affordable Housing Facility

Citi Community Capital has provided $250 million in financing—one of its largest single investments in affordable housing—to help create or preserve nearly 6,000 low- and moderate-income units in New York State. The Community Preservation Corp., a mortgage lender for multi-family affordable housing that secured the Citi financing, said approximately 3,000 of those units will be in New York City. About $100 million will be used to finance those apartments. The New York City Department of Housing Preservation and Development will provide supplemental construction and permanent financing, and the New York City Housing Development Corp. will provide a 10 percent credit enhancement.

Meridian Capital Arranges $128M for NYC Land Purchase

Meridian Capital Group has negotiated acquisition financing on behalf of JDS Development Group for a vacant lot located on First Avenue in Manhattan’s Murray Hill neighborhood. UBS Real Estate Securities Inc. provided the loan. JDS Development Group intends to build two multi-family towers on the 730,426-square-foot site. Current plans call for a 37-story building and a 47-story building totaling 830 units. The site is zoned for residential use and overlooks the East River.