Fortis, David Werner Lock In $100M in Mezzanine Debt from Korean Investor
Brooklyn-based Fortis Property Group and investor David Werner have landed a $100 million mezzanine loan to refinance a portion of debt on 1 Lincoln Street, a 36-story office building in Boston’s Financial District, Commercial Observer can first report.
South Korean investment manager KTB Asset Management Co. and New York-based Rexmark Real Estate provided the financing, which has a five-year term and is junior to a $785 million loan issued by Morgan Stanley (MS) to refinance debt on the property last year. A representative for Fortis did not immediately return a request for comment.
The 1.1-million-square-foot building, which was built in 2003, is almost fully leased to financial services company State Street Corporation and therefore is known as the State Street Financial Center. State Street’s name is on the building and can be seen from far away.
Midtown South-based PD Properties advised KTB on the new mezzanine debt. A representative for PD Properties declined to comment on the transaction.
Fortis acquired the tower for $889 million in 2006 from a joint venture led by American Financial Realty Trust, according to Boston Globe.
Korean institutions have been aggressive in the mezzanine lending space, as CO previously reported. Just last month KTB and Rexmark provided $101 million loan to the Chetrit Group for its properties at 90-100 Trinity Place, as The Real Deal reported.