John Hancock Lends $41M Against Florida Office Property
CBRE arranged a $41 million mortgage from life company John Hancock Financial to refinance Presidential Circle, a Class A office in Hollywood, Fla., Commercial Observer can first report.
CDR Realty, a private company, is using the new loan to replace debt from MetLife and complete upgrades on the property.
The brokerage’s Charles Foschini and Christopher Apone worked on the transaction, which carries a 10-year term and a 62 percent loan-to-value ratio. The deal closed on Aug. 9.
The 281,625-square foot office property, at 4000 Hollywood Boulevard, spans across two, seven-story buildings connected by a seven-story lobby. It is 93 percent leased to 56 tenants.
The current asking rent in the building ranges from $23 to $24 per square foot, according to marketing materials from JLL, which handles leasing for the property.
“While market volatility this year has made for a challenging lending environment, it has also presented some outstanding opportunities,” said Foschini, the vice chairman of capital markets at CBRE. “The key to this loan was finding a lender who recognized the quality of sponsorship and the asset’s commanding position in what most perceived to be a ‘micro market’ within Broward County’s more institutional submarkets. In running our process, we identified several lenders with outstanding terms and one correspondent lender, John Hancock, who locked rate at application, providing our client with an enviable rate as the treasury suddenly dropped.”
The highest that the U.S. 10-year Treasury hit this month was 1.59 from Aug. 5 to Aug. 8. The following day, when the deal closed, the rate dropped to 1.55.
A representative for the borrower could not be reached and a spokesman for John Hancock did not respond to a press inquiry.