MetLife Provides $125M Refi on 2 Long Island Office Properties
By Mack Burke October 16, 2019 11:45 am
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Boston-based Rockpoint Group and CLK Properties have nabbed $125 million from MetLife to refinance a two-building office complex called The Fountains at Lake Success in New Hyde Park, N.Y., according to information from brokerage Cushman & Wakefield (CWK) (C&W).
The financing is backed by the two office properties at 1981 and 1983 Marcus Avenue, which comprise a combined 683,797 square feet.
A C&W debt team of Gideon Gil, John Alascio, Sri Vankayala and Emily Johansen represented the joint venture borrowing party in the transaction.
“We received a remarkably strong response from the debt market given the highly experienced sponsorship, diverse tenant roster and premier Lake Success location,” Gil said in a prepared statement. “The Class A property, currently 96 percent occupied, is a standout amongst suburban office product given its location and tenancy.”
The offices have primarily played host to medical and life sciences uses, such as for Long Island Eye Surgeons, which has space in 1981 Marcus Avenue, as well as Northwell Health Labs, the region’s largest full service health system medical laboratory, and affiliated pediatrician’s office Cohen Children’s Northwell Health Physician Partners at 1983 Marcus Avenue.
“Since acquiring the property in 2011, the sponsor has invested significantly in capital improvements and completed nearly 700,000 square feet of leasing, allowing them to secure a competitive refinancing of the existing debt,” Vankayala said in prepared remarks. “After receiving strong lender feedback, we ultimately selected MetLife, as they were able to provide attractive terms and demonstrated a clear understanding of the asset.”
Originally built in 1986, according to information from Colliers (CIGI) International‘s website, the two three-story properties feature free subterranean parking, an 8,000-square-foot fitness center, an on-site Au Bon Pain cafe and a dry cleaner. The property went through roughly $14 million in renovations in 2008, according to information from CLK Properties’ website.
Office rents at the complex range from $27 to $35 per square foot per year, according to leasing data from Colliers International’s website.
A representative for MetLife was not able to provide a comment before publication. Officials at both CLK and Rockpoint were not immediately available.
