November – Briefs/Finance

Tucker Secures $218M for Phase I of 1 MSF NJ Development; Parkway Properties Buys Thomas Properties for $1.2B; Marcus & Millichap Files for IPO; Berkeley Closes $325M Refinance of San Francisco’s Gateway; HFF Arranges $99M for M-U Development in DC; SL Capital Provides $130M for Paramount Building in Times Square; Clarion Gets $150M in Financing for 1.3 MSF Office; Washington Property Closes $75M for M-F Asset in Suburban DC.

Tucker Secures $218M for Phase I of 1 MSF NJ Development

1113_Briefs_FinanceA joint venture comprising Tucker Development Corp., Ares Management and Kushner Real Estate Group has secured $218 million in financing for the initial phase of Hudson Lights, a 1 million-square-foot mixed-use redevelopment of an eight-acre site located at the base of the George Washington Bridge in the heart of downtown Fort Lee, N.J.

With financing in place, Tucker will soon commence construction on the first phase of the project, which comprises 517,000 square feet of commercial and residential space, including 143,000 square feet of retail space, 864 parking stalls and 276 luxury apartments. The second phase of Hudson Lights will include an additional 201 residential units, approximately 50,000 square feet of retail space and parking, as well as a 175-room hotel.

Parkway Properties Buys Thomas Properties for $1.2B

Parkway Properties Inc. and Thomas Properties Group Inc. will soon become one. The two office real estate companies have entered into an agreement calling for Thomas Properties to merge with and into Parkway. The $1.2 billion stock-for-stock transaction will leave Parkway shareholders with a 75 percent ownership stake and Thomas shareholders with the remaining 25 percent interest.

The Parkway and Thomas boards of directors have given the green light for the merger, and assuming the stockholders give their approval, the unification of the two companies will likely close by the end of the fourth quarter of 2013.

Marcus & Millichap Files for IPO

Citing improvement in the commercial real estate industry, Marcus & Millichap Inc. has filed plans for an initial public offering of much as $103.5 million with the U.S. Securities and Exchange Commission. The company plans to list on the NYSE under the symbol MMI. The SEC filing said the number of shares or price range had not been determined. It also plans to spin off Marcus & Millichap Real Estate Investment Services as a wholly owned subsidiary of Marcus & Millichap Inc. once the offering is completed. The filing notes that founders George Marcus and William Millichap would serve as co-chairmen of the board and retain their positions as directors of Marcus & Millichap Co.

Berkeley Closes $325M Refinance of San Francisco’s Gateway

It’s a big property with a big financing deal. The Gateway, a 1,254-unit multi-family community spanning three blocks in San Francisco, has been refinanced to the tune of $325 million, courtesy of a loan closed by Berkeley Point Capital L.L.C. and Freddie Mac. The Gateway has been a fixture in San Francisco’s Financial District since its completion in 1967, and it has been part of Berkeley Point’s portfolio since 1997, when the multi-family capital solutions provider and Freddie Mac first refinanced the nearly eight-acre property on behalf of the sponsor.

HFF Arranges $99M for M-U Development in DC

Washington, D.C.’s U Street/North Shaw submarket will see a former plumbing supply company transformed into a 375-unit, Class A, mixed-use development aimed at young professionals. Work on the Atlantic Plumbing project located at the intersection of Eighth and V streets, N.W., can begin, thanks to a $99.2 million financing deal arranged by HFF on behalf of the owners, The JBG Cos. of Chevy Chase, Md., and Walton Street Capital L.L.C. of Chicago. The four-year construction loan from Capital One has extension options for an additional three years.

SL Capital Provides $130M for Paramount Building in Times Square

Miami-based SL Capital L.L.C., a correspondent lender for Cantor Commercial Real Estate, has funded a $130 million mortgage on the historic Paramount Building located at 1501 Broadway in the heart of New York’s Times Square. The transaction was brokered by Meridian Capital Group L.L.C. SL Capital provided a 10-year fixed-rate mortgage on the property, which occupies the entire block between 43rd and 44th streets. The 782,230-square-foot tower has a ground-floor retail roster that includes Hard Rock Café, Bubba Gump Shrimp, Yankees Clubhouse and Levi’s. A broad mix of office tenants occupies the upper 32 floors.

Clarion Gets $150M in Financing for 1.3 MSF Office

An ownership entity managed by Clarion Partners has secured $150 million in financing for the 1.4 million-square-foot Merritt 7, an office park in Norwalk, Conn. Clarion relied on commercial real estate and capital markets services provider HFF to arrange the financing through CIBC World Markets. The Class A complex consists of six seven-story structures planted on 22 acres along the Norwalk River. Developed between 1980 and 1990, the buildings vary in size from 208,000 and 246,000 square feet, and together are 90.5 percent leased.

Washington Property Closes $75M for M-F Asset in Suburban DC

Washington Property Co. has landed $75 million in permanent financing for Solaire-Metro, the commercial real estate concern’s 295-unit luxury apartment community in the suburban Washington, D.C., city of Silver Spring, Md.  The newly developed property is well located, well leased and well sponsored. It was also well liked by investors as WPC sought out financing. ING Investment Management L.L.C. provided the financing, which came in the form of a 20-year loan.