Starwood Capital Provides $90M to Refi Three Pittsburgh-Area Office Properties
By Mack Burke July 26, 2018 4:43 pm
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An affiliate of Burns Scalo Real Estate has landed a $90 million loan from Starwood (STWD) Mortgage Capital to refinance three office buildings within a corporate campus in Canonsburg, Penn., according to HFF.
The 10-year, 4.7 percent fixed-rate loan at Zenith Ridge refinanced and replaced previous debt from WesBanco, Christie Reiber, Burns Scalo’s director of finance, told Commercial Observer. WesBanco made the original loan in 2013, but Reiber declined to comment on the amount of the previous debt.
The affiliate, Quattro, is a partnership between Pittsburgh-based firms Burns Scalo and Summa Development and Burns Scalo Principals Jim and Jack Scalo and Summa Principals John Verbanac and Charles Zappala. Burns Scalo manages and leases the properties.
“I think that it’s a great property in a great location, and it made sense for us to go to long-term debt with no recourse with Starwood Capital,” Reiber said. “We had a lot of interest from lenders in the CMBS market.”
The three five-story buildings—called Zenith Ridge 1, 2 and 3—are located at 2400 Ansys Drive—the main address for the campus, according to a spokeswoman for Burns Scalo—in Canonsburg, just about a 30 minute drive southwest of Pittsburgh. The properties are located within the town’s sprawling Southpointe Business Park.
Ansys, an engineering simulation and 3-D design software company based in Canonsburg, occupies all of Zenith Ridge 1, a 186,000-square-foot property, and also occupies approximately 31,000 square feet in the 150,00-square-foot Zenith Ridge 2. EQT Corporation, a petroleum and natural gas exploration and pipeline transport company, is housed in all of Zenith Ridge 3, which is also encompasses 150,000 square feet. Zenith Ridge 2 hosts a range of tenants in smaller spaces, including Wells Fargo (WFC), which has 6,300 square feet in the building, a spokeswoman for Burns Scalo told CO.
The entire portfolio is 100 percent leased.
Campus amenities include walking trails, outdoor exercise stations, table tennis, communal fire pits, outdoor patios and outdoor meeting areas.
HFF Senior Managing Director Mark Popovich worked on behalf of the borrowing partnership to secure the financing.
A Starwood Mortgage Capital spokesman didn’t provide a comment.
