Credit Suisse Lends $350M on 8 Suburban Offices Near Atlanta, Chicago
Adventus Realty Trust has locked in $350 million in debt originated by Credit Suisse to refinance a bundle of eight suburban office properties located throughout the Atlanta and Chicago areas, Commercial Observer has learned.
The floating-rate, single-asset single-borrower (SASB), commercial mortgage-backed securities (CMBS) financing allowed Adventus to refresh its positions in three suburban office assets in the Chicago area and five in the Atlanta area.
The existing loans on these suburban office assets, which were retired as part of this new SASB deal from Credit Suisse, had previously been securitized in a variety of CMBS conduit transactions.
Credit Suisse declined to comment on the deal.
BayBridge Real Estate Capital’s Jay Miller, Spencer Miller and AJ Felberbaum negotiated and structured the debt deal. The team declined to comment on the specifics of the transaction.
The eight suburban office properties in this portfolio span a combined 2 million square feet and proved to be resilient amid the pandemic, registering 98 percent of rental collections, according to information from BayBridge.
The three Illinois properties include Crossings at 1420-1520 Kensington Road in Oak Brook; Columbia Centre I and II at 5600 North River Road and 9450 West Bryn Mawr Avenue, respectively, in Rosemont; and Cantera Meadows at 28100 Torch Parkway in Warrenville.
Crossings is a roughly 304,000-square-foot suburban office that Adventus bought for just under $36 million in fall 2013, with a $24.8 million loan from JPMorgan Chase (JPM). It was 91 percent occupied when it was bought, according to Adventus’ website. The firm bought the nearly 620,000-square-foot Columbia Centre a year later in October for $93.1 million, facilitated by a $66.5 million loan from JPMorgan, per Adventus’ website. Adventus picked up Cantera Meadows in March 2014 for $28.4 million, with JPMorgan also supplying acquisition debt for the buy. The loan on the asset was then securitized in the JPMBB 2014-C19 CMBS conduit deal, according to data from Trepp.
The Atlanta properties in the portfolio include the 315,000-square-foot Barrett Lakes Center at 1701 Barrett Lakes Boulevard in Kennesaw, which Adventus bought for nearly $50 million in 2016, with a $34.5 million loan that was securitized in the JPMDB 2016-C2 conduit; the 320,000-square-foot Milton Park at 30000 Mill Creek Avenue in Alpharetta, which was bought for $57 million in the winter 2016 with a $40 million loan from JPMorgan; Town Park Commons at 125-500 TownPark Drive in Kennesaw, which spans 350,000 square feet and was bought by the firm in 2018 for $73.3 million, with the $48 million CMBS acquisition loan being securitized in the BMARK 2018-B6 deal; and finally, 1000 Parkwood and 1600 Parkwood at 1000 Parkwood Circle and 1600 Parkwood Circle in Atlanta, respectively.
The two Parkwood Circle assets are made up of more than 367,000 square feet of space. Adventus bought 1000 Parkwood for nearly $40 million in the summer of 2016, and it picked up the neighboring 1600 Parkwood for $23.2M a little over two years later, per the firm’s website.
Mack Burke can be reached at email@example.com.