Mortgage Observer

Cornerstone Lends $92.5M on Office Portfolio

Soundview Plaza

Cornerstone Real Estate Advisers, a subsidiary of Massachusetts Mutual Life Company, lent $92.5 million to Pennsylvania-based real estate investor and manager Keystone Property Group, according to a press release from brokerage HFF, which arranged the deal.

Keystone will use the proceeds of the three-year, floating-rate loan to upgrade several Connecticut and Westchester County, N.Y. office properties it recently acquired in a J.V. with Mack-Cali Realty Corporation. Read More

Mortgage Observer

HFF Secures $175M Refi from TIAA-CREF

Lion Industrial Trust Property, Flower Mound, TX.

A $175 million fixed rate loan was secured by HFF on behalf of Lion Industrial Trust, a fund managed by Clarion PartnersMortgage Observer has learned. The loan term is 10 years, according to HFF Senior Managing Director John Rose, who led the team representing the borrower.

The fund will use the loan, provided by retirement fund TIAA-CREF, to refinance a 4.99 million-square-foot industrial property portfolio, which is just over 94 percent leased, the statement said.  Read More

Mortgage Observer

Blackstone Refis Chicago Office to the Tune of $82M

444 North Michigan Avenue

HFF has arranged an $82.15 million refinancing for a 517,115-square-foot office property in Chicago, Mortgage Observer has exclusively learned. The building, at 444 North Michigan Avenue, is owned by GLL Real Estate Partners.

Working on behalf of Munich-based international real estate fund manager GLL, HFF sourced the floating-rate loan provided by Blackstone Mortgage Trust, a representative for the brokerage said Read More

Sales Beat

West Side Development Site Trades for $43M

505-513 West 43rd Street. (PropertyShark)

Elad Group has acquired the 20,030-square-foot vacant lot at 505-513 West 43rd Street from Rhode Island-based Magna Hospitality Group for $43 million, according to city property records. Robert Indeglia, the president and chief executive officer of Magna Hospitality, confirmed the sale in an email to Commercial Observer.

As previously reported, the site hit the market last summer with an asking price of $300 per buildable square foot, or nearly $50 million. Located between 10th and 11th Avenues, the lot can accommodate 160,664 square feet of zoning floor area and 190 residential units. Read More

Mortgage Observer

PRC Lands $52M Construction Loan for Student Housing Project

A rendering of the planned development at The College of New Jersey

New Jersey-based developer The PRC Group nabbed $52.5 million in construction financing for its $80 million student housing project at The College of New Jersey, Mortgage Observer has learned.

HFF secured the three-year loan for the 130-unit development, which should be complete by fall of 2015. The trio of lenders was led by M&T Bank, an M&T spokesperson confirmed, and funds from The Provident Bank and Columbia Bank were bundled into the deal, according to Greg Lentine, director of university campus development for PRC.  Read More

Mortgage Observer

A World Without Fannie and Freddie?

Fannie Mae Headquarters

A proposed Senate bill that seeks to wind down Fannie Mae and Freddie Mac over the next five years, revealed last month, would preserve their multifamily lending businesses under a new entity and maintain a government guarantee for the multifamily lending market, commercial lenders and brokers told Mortgage Observer.

The bill, announced by Senators Tim Johnson and Mike Crapo on March 11, focuses on the dissolution of the firms’ single-family residential mortgage business, a market that the government-sponsored entities continue to dominate six years after the beginning of the financial crisis. It also creates a provision that would spin off the companies’ multifamily businesses and establish new independent businesses within a year of the bill’s passage. Read More

Mortgage Observer

Whopper of a Deal

HFF secured a $65 million loan for 99 Burger King properties

“Have it your way” might be what HFF brokers said when Jaylor Services secured a $65 million, ten-year, fixed-rate, non-recourse loan for a slew of Burger King properties across the nation.

HFF represented the borrowers, a management company that operates single-tenant restaurant companies, according to a statement from HFF. Read More

Mortgage Observer

Flushing Commons Developers to Close $300M Financing Brokered by HFF

Flushing Commons. (Credit: Perkins Eastman)

The developers behind the long-stalled Flushing Commons project are about to sign off on about $300 million in debt and equity financing for phase one of the massive mixed-use Queens complex.

The partnership between Flushing-based TDC Development and Construction Corporation, AECOM Capital, the Rockefeller Group and Mount Kellett Capital Management is getting ready to close a roughly $225 million loan from Starwood Property Trust and a $75 million equity investment from the developers, a person familiar with the negotiations told Mortgage Observer on background. Both deals are expected to close at the end of the month, that person said. Read More