MetLife Funds $125M Long Island Office Refi
- Oct 17, 2019
Rockpoint Group and CLK Properties have scored $125 million from MetLife to refinance The Fountains at Lake Success, a two-building corporate office complex in Long Island, N.Y. Gideon Gil, John Alascio, Sri Vankayala and Emily Johansen with Cushman & Wakefield’s Equity, Debt & Structured Finance platform represented the borrowers.
Built in 1985, the 683,797-square-foot asset is located at 1981 and 1983 Marcus Ave. in Lake Success, a village on the western edge of Nassau County. Gil noted in the statement that the Class A property, which is currently 96 percent occupied, commanded a strong response from the debt market.
The sponsor has completed nearly 700,000 square feet of leasing since acquiring the property in 2011, he added, enabling a competitive refinancing of the existing debt. According to Yardi Matrix, the Blackstone Group held the previous $110 million loan, originated in 2014. Current tenants of the healthcare-focused complex include CareMed Specialty Pharmacy and Integra Managed Care.
Investing in upgrades
CLK, a Long Island-based owner and manager of prime office space led by Craig Koenigsberg, bought the property in 2005 and later introduced Rockpoint Group as an equity partner to pay off debt holders, according to an account in The Wall Street Journal. Boston-based Rockpoint Group took a controlling stake in the asset and the venture invested millions of dollars in capital improvements.
The three-story complex is located near Long Island Expressway (Interstate 495) and Northern Parkway and features underground parking, a fitness center and on-site cafes. CLK also owns 1985 Marcus Ave., which spans more than 289,000 square feet just next door.
Last October, Rockpoint Group acquired a retail and office condominium building adjacent to Boston’s North Station for $107 million. Invesco sold the property, 226 Causeway, which measures 192,890 square feet.