Barclays, Citigroup Lead $350M CMBS Financing for Suburban Office Portfolio
By Cathy Cunningham June 11, 2021 1:59 pm
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Angelo Gordon and The We’re Group have landed a $350 million commercial mortgage-backed securities (CMBS) refinance for a portfolio of 16 suburban office assets spread across Long Island’s Nassau and Suffolk counties, Commercial Observer can first report.
Barclays and Citigroup led the floating-rate financing, which will have a single-asset, single-borrower (SASB) execution.
Dustin Stolly and Jordan Roeschlaub, vice chairmen and co-heads of Newmark (NMRK)’s New York debt & structured finance team, negotiated the debt, along with Newmark senior managing directors Chris Kramer and Nick Scribani, and associate Ben Kroll.
The portfolio —which comprises both traditional and medical office properties — sits along the North Shore of Long Island and includes 50 Jericho Quadrangle in Jericho, N.Y.; 3003 New Hyde Park Road in New Hyde Park, N.Y.; and 3000 Marcus Avenue in Lake Success, N.Y.
The We’re Group has owned and operated assets in the area for nearly 50 years, over three generations of family ownership. Angelo Gordon entered the collateral portfolio’s ownership structure in 2019, when the two firms entered into a joint venture agreement for certain assets within We’re Group’s existing portfolio.
Benefitting from close-proximity to main throughways as well as several hospitals, the office portfolio is currently 89 percent leased to a roster of tenants in the medical, finance and law industries, with no single tenant accounting for more than 18.2 percent of the net rentable area.
“By leveraging the high-quality rent roll and committed tenancy with this best-in-class sponsorship, we were able to achieve a really great execution for all parties involved,” Stolly said.
“Angelo Gordon has been able to acquire a great portfolio with diversified cash flow. We were able to leverage our deep SASB experience to provide an accretive financing solution for the portfolio,” Roeschlaub added.
It’s been a busy time for Angelo Gordon from coast to coast. In late April, the firm acquired Santa Clarita Storage, a Class A self-storage property with 105,743 rentable square feet in Santa Clarita, Calif., along with joint venture partner, Andover Properties. The new owners plan to rebrand the property under the name “Storage King USA, as reported by CO.
