The Bancorp Bank, a 14-year-old domestic Internet bank, provided floating-rate bridge financing to Denholtz Associates to recapitalize a 132,721-square-foot office property the firm owns in Matawan, N.J., Mortgage Observer has first learned.
HFF worked on behalf of the private development and management firm to secure the three-year $14.5 million loan on Metro Park South, which is located at 100 Matawan Road, off of the Garden State Parkway.
Proceeds from the non-recourse loan will go to paying off existing debt, commencing a capital expenditure program on the building’s common areas and funding upcoming tenant improvements and leasing commissions to stabilize the office property, according to the broker.
The loan is part of a $20.7 million transaction including joint-venture equity from Denholtz affiliate Palatine Capital Partners, which was brokered by Cushman & Wakefield’s equity, debt and structured finance team.
Rents in the four-story office property, which contains a five-story atrium that extends below the ground floor, run between $22.50 and $26 a square foot, according to the commercial real estate listing service LoopNet. The building was constructed in 1986.
Director Michael Klein, Senior Managing Director Jon Mikula and Associate Director Michael Lachs led the HFF debt placement team representing the borrower.
“The borrower was seeking a loan that would provide them with the capital needed to refresh the building’s image in the market,” Mr. Klein said in a written statement. “Upgrades to the lobby and common areas as well as the building’s exterior will help draw small and midsize tenants that want to be located south of the Driscoll Bridge to an already tight submarket.”
Bancorp, which is publicly traded on the NASDAQ stock exchange, offers commercial and government-guaranteed loans as well as healthcare solutions and institutional banking services, according to the company’s website.
“Bancorp quickly understood the borrower’s needs and was able to provide a non-recourse loan structure that will enable Denholtz Associates to execute its business plan,” Mr. Mikula said. “Their process was seamless and they were able to close in approximately 30 days, which helped the borrower meet their upcoming loan maturity.”