Friday, July 12, 2013

Lenders take the strain with flex' financing - Real Estate Weekly

Broadacre Financial, the boutique commercial real estate advisory firm launched by Merrill veteran Chris Haynes, has arranged approximately $50 million in financing for five Portsmouth, NH properties.

Two of the properties were financed by Wells Fargo Real Estate Capital Markets Group.

The largest was One Harbour Place, the premier office building in the market. Located on the waterfront in historic downtown Portsmouth, its tenants include Morgan Stanley, Wells Fargo, Cambridge Trust and Optima Bank and Trust. Wells Fargo provided a non-recourse loan.

Wells also financed 100 International Drive, a 111,842 s/f multi-tenant office building located at the Pease Tradeport, the highly successful redevelopment of the former Pease Air Force base. he building?s largest tenant is Liberty Mutual.

People?s United Bank provided seven and 10-year balance sheet financing for three of the properties at the Pease Tradeport:

180 International Drive. A single-tenant 56,658 s/f property built for Medtronic Salient Surgical Technologies, the building consists of office, cleanroom research and manufacturing labs, and warehouse.

75 New Hampshire Avenue. A LEED Gold Standard multi-tenant office building, the 64,274 s/f property?s largest tenant is Newmarket International, a software developer for the hospitality industry.

200 International Drive. An 81,851 s/f multi-tenant flex-office property, this asset has an office core, flanked by mixed use office/warehouse/light manufacturing suites.

?The allocation of assets between a portfolio lender and a non-recourse lender provided the borrower with the necessary flexibility for future development and a great non-recourse rate,? according to Haynes.
?Wells provided very attractive rates, and non-recourse financing, while People?s gave the borrower flexibility and ease of execution. It was a good diversification for the borrower?s portfolio.?

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Source: http://www.rew-online.com/2013/07/11/lenders-take-the-strain-with-flex-financing/

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