HFF closed a $46.4 million loan from Square Mile Capital Management to replace existing debt on a 371,680-square-foot office complex in Warren, N.J., Mortgage Observer has first learned.
The three-year, floating rate loan to Normandy Real Estate Partners on its property, Center 78, closed in mid-June.
Normandy acquired the building, located on a 47-acre office park at 184 Liberty Corner Road, in December 2011 and completed a $12 million capital expenditure program to reposition the property in December 2012. The upgrades included a new entry façade as well as an expansion of the building’s lobby, new bathrooms and new elevator cabs.
The loan from Square Mile will be used to retire initial financing from an undisclosed lender to acquire and reposition the property.
“Like Normandy, Square Mile has a long and successful track record as an equity investor in commercial real estate assets that require repositioning in order to unlock hidden value,” said Square Mile Vice President Matt Drummond. “With the recent launch of Square Mile’s senior loan origination plat- form, we now are utilizing our firm’s proven real estate and structuring expertise to serve institutional and entrepreneurial borrowers as a direct lender.”
Senior Managing Director Jon Mikula and Associate Director Michael Lachs led the HFF team representing the borrower.
“Center 78 is an excellent example of how a building can be totally renovated and creatively reconfigured to attract new, high quality, discerning tenants. Normandy has done just that,” Mr. Mikula said.
Center 78 was built in 1982. The office property’s tenants include EMC, Fiserv and UBS.
Normandy also recently took a $21.5 million senior secured loan from CIT to re- finance its Westford Corporate Center in Westford, Mass., as Mortgage Observer first reported.