October 2014 – Briefs/Finance

Citizens Financial Leads $296M Financing for 1.2 MSF Chicago Office Project; Canyon Capital, Hudson Pacific Provide $140M Loan for L.A.’s Broadway Trade Center; Morgan Stanley Mortgage Capital Supplies $700M CMBS Loan; Meridian Arranges $210M for L.A. Retail Acquisition; St. Anton Inks $96M Loan for Facebook Co-Designed M-F; Shorenstein Lands $170M for 850 Third Ave.; Dominion Mortgage Introduces New M-F Lending Program; Walker & Dunlop Structures Financing for 1,032-Unit M-F Portfolio.

Citizens Financial Leads $296M Financing for 1.2 MSF Chicago Office Project

1014_Briefs_Finance_c-Goettsch-Partners_1500-600x1024Citizens Financial Group has paved the way for the O’Donnell Investment Co.’s $500 million development of 150 N. Riverside, a nearly 1.4 million-square-foot office high-rise in Chicago’s coveted West Loop submarket. Citizens Financial, Bank of America and Helaba—co-lead arrangers and joint bookrunners—provided the developer with a $296 million construction loan. Towering 53 stories above the Chicago River on a parcel that had sat vacant for quite some time, the Goettsch Partners-designed skyscraper will be a premier office destination, providing 1.2 million square feet of leasable state-of-the-art office space, as well as 12,000 square feet of on-site food service, a 7,000-square-foot fitness center and a 1.5-acre park.

Canyon Capital, Hudson Pacific Provide $140M Loan for L.A.’s Broadway Trade Center

Canyon Capital Realty Advisors L.L.C. and partner Hudson Pacific Properties Inc. have made a move that paves the way for Waterbridge Capital and investor Jack Jangana to redevelop the 1 million-square-foot Broadway Trade Center in downtown Los Angeles. Canyon and Hudson will provide the joint venture with a $140 million senior bridge loan, and the partners have already funded the first tranche. Broadway Trade Center is about as historic as Los Angeles commercial properties get. Completed in 1908, the nine-story structure was originally home to the A. Hamburger & Sons department store until the May Co. acquired the property in 1923. As the May Company Building, it housed the retail store until the mid-1980s, when it became a multi-use retail trade center. Waterbridge and Jangana plan to transform the vintage property into a premier destination with creative office space and flagship retail opportunities.

Morgan Stanley Mortgage Capital Supplies $700M CMBS Loan

A partnership led by David Werner and Mark Karasick has acquired the leasehold position in the iconic 42-story Mobil Building at 150 E. 42ndSt. in Manhattan, thanks to $700 million in financing arranged by Meridian Capital Group L.L.C. and Eastdil Secured. The 10-year, fixed-rate, full-term interest-only CMBS loan was provided by Morgan Stanley Mortgage Capital Holdings L.L.C. The partnership acquired the leasehold position from Hiro Real Estate L.L.C.

Meridian Arranges $210M for L.A. Retail Acquisition

With a $210 million, 10-year CMBS loan in hand, Ashkenazy Acquisition Corp. has purchased the Beverly Connection retail property in Los Angeles. The loan, which features a fixed rate and interest-only payments for the full term, was arranged by Meridian Capital Group senior managing director Ronnie Levine and managing director Jeffrey Berkes—both of whom are based in the firm’s New York City headquarters. The 335,000-square-foot retail property houses CityTarget, Nordstrom Rack, Marshalls, TJ Maxx, Ross and Old Navy. Saks Off-Fifth is expected to open in early summer of 2015.

St. Anton Inks $96M Loan for Facebook Co-Designed M-F

St. Anton Partners has closed on a $96 million construction loan from U.S. Bank for the 394-unit Anton Menlo Apartments development in Menlo Park, Calif. Sited less than two miles from Facebook’s headquarters campus, the $120 million project reportedly is the first significant multi-family development in Menlo Park in more than 30 years. It’s slated for completion in 2016. Particularly because the project is in an industrial area, St. Anton worked with Facebook to design a suite of on-site amenities to appeal to high-tech workers, such as a convenience store, café, sports pub, bicycle repair shop, pet care, exercise facilities and indoor/outdoor recreational space.

Shorenstein Lands $170M for 850 Third Ave.

A strong tenant roster in a core market makes for easy financing. MetLife Inc. has provided Shorenstein Properties L.L.C. with a $170 million, three-year, floating-rate loan to refinance 850 Third Ave. in Manhattan. The 21-story office complex is located between 51st and 52nd streets in Midtown East. Built in 1962 and renovated in 2008, the 613,664-square-foot asset is currently 91 percent leased to Discovery Communications, the city of New York, Shearman & Sterling L.L.P. and Radio One.

Dominion Mortgage Introduces New M-F Lending Program

Dominion Mortgage Corp. has launched a new multi-family portfolio lending program that provides financing for a range of multi-family property types in major U.S. markets and, perhaps most important, allows borrowers to avoid the pesky red tape that goes hand in hand with the oft-used government-sponsored programs. Dominion’s new program provides borrowers with fixed-rate loans as large as $30 million that can be amortized up to 30 years, with fixed terms extending out to as many as 10 years. The program also fills a gap, supplying bridge products for renovations, bridge-to-sale and other endeavors.

Walker & Dunlop Structures Financing for 1,032-Unit M-F Portfolio

Walker & Dunlop Inc.’s extended commercial lending platform continues to blossom, and Key Real Estate Co. is the latest borrower to benefit. Walker & Dunlop has structured a $72.2 million financing package for the real estate owner and manager’s acquisition of a 1,032-unit apartment portfolio in Texas and Louisiana. Walker & Dunlop facilitated a multi-faceted deal, one component of which consists of three loans totaling approximately $35.4 million in adjustable-rate bridge financing at 87 percent loan-to-cost with a 24-month term and the option of a 12-month extension. The package also includes a $31.4 million fixed-rate conduit loan at 71 percent loan-to-value with four years interest-only and a 30-year amortization. Rounding out the bundle, Walker & Dunlop arranged and co-invested in a nearly $5.4 million mezzanine loan with terms and a structure identical to those of the conduit loan.