New Jersey-based Accordia Realty Ventures, LLC has announced the complete refinancing of the first mortgage loans on two of its office buildings, which it has owned for over five years.
The properties are Greenbrook Executive Center, a 200,000-square-foot class A building located at 100 Passaic Avenue in Fairfield, N.J. and River Drive Center II, an 83,000-square-foot building located at 669 River Drive in Elmwood Park, N.J.
Accordia Realty declined to provide details on the amount of the loans, but it confirmed that Lakeland Bank has fully refinanced a first mortgage loan on Greenbrook Executive Center, which, according to public records, was $21.3 million in September 2006. The property was purchased for $31.9 million.
Accordia Realty principal Joseph Romano told The Mortgage Observer that the company has invested about $5 million in renovations to the building. In 2006, the occupancy rate was approximately 85 percent. In the last few years, despite having lost a large tenant, the company executed seven new lease agreements and boosted occupancy back to approximately 90 percent. Among the most recent tenants to sign a lease is entrepreneur Jason Cohen’s Rickland Orchards, LLC, a newly launched firm of healthy Greek yogurt food products.
Mr. Romano added that Accordia Realty is in the process of finalizing leases at River Drive Center II, bringing the occupancy rate of that building to approximately 80 percent from a previous 65 percent. Accordia Realty bought the office building in January 2007 for $11.9 million. Now Allstate Life Insurance Company has renewed its loan on the property.
“We have been very successful with our refinancing efforts in large part due to our long-term relationships,” Mr. Romano said in a prepared statement. “The lending community recognizes the quality behind Accordia Realty assets – the very positive leasing velocity, the high-level management and maintained value demonstrated at our properties.”
“In turn, with our successful refinancing, Accordia Realty is in acquisition mode seeking office, industrial, retail and development projects in the tri-state area,” added Accordia Realty principal Jason Bogart. The company is currently looking at properties in Westchester, N.Y., Connecticut and Pennsylvania.