MetroGroup Arranges $50M in Financing for Two Offices
- Nov 22, 2016
Denver and San Antonio—MetroGroup Realty Finance, a private commercial mortgage banking firm, has announced the restructuring of debt on two office buildings in Denver and San Antonio. Scott Botsford, vice president of MetroGroup, has secured $50.3 million in financing for the properties, which total 328,159 square feet of space.
“Office product in secondary markets throughout the U.S. continues to perform well, especially in high growth areas such as Texas and Colorado where job and economic growth are flourishing,” said Botsford, in prepared remarks. “San Antonio is recognized as one of the most stable regional economies in the U.S. with unemployment rates at historic lows. In addition, the Denver metro has demonstrated consistent economic growth with unemployment rates hovering around 3.3 percent.”
Dornin Investment Group was the financing sponsor. In the first transaction, MetroGroup arranged a $29.9 million loan for Parkway Plaza, the 89,388-square-foot building in San Antonio, which included additional advances for tenant improvements and a leasing commission. In the second transaction, MetroGroup arranged a $20.3 million loan for Highland Place, the Class A 138,771-square-foot asset in Denver.
“We took a unique approach to structuring the transactions in order to meet the sponsor’s overall needs. In both transactions, we recommended pairing a bridge loan and a mezzanine loan,” said Botsford, in prepared remarks. “In doing so we directed and guided the collaboration of two different capital sources, with no prior experience working together to provide one loan for our client. This out-of-the-box approach allowed us to achieve the desired amount in equity repatriation for the partnership buyout, while at the same time securing a more competitive rate on behalf of the sponsor.”
Images courtesy of MetroGroup Realty Finance