Exclusive: Time Equities Scores Refi for Detroit Office Asset
The firm acquired the property back in 2013.
Time Equities has obtained a $29.5 million refinancing note for Travelers Tower II, a 423,449-square-foot office building in Southfield, Mich., according to Yardi Matrix information. The Northern Trust Co. originated the permanent note.
The company acquired the metro Detroit asset back in June 2013 in a portfolio transaction that also included the 422,694-square-foot Travelers Towers I for a total of $25.1 million, the data provider shows. Lehman Brothers sold the campus.
Three years later, Time Equities obtained a $16 million note from Providence Equity Partners backed by the building. That note was set to mature in June 2026.
Located at 26533 Evergreen Road, the 13-story building is within Southfield’s City Center and close to Interstate 696. Downtown Detroit is within 17 miles southwest.
Completed in 1987, the mid-rise underwent cosmetic renovations in 2013. The building sits on almost 12 acres and has floorplates ranging between 32,573 and 42,611 square feet. The facility also has five passenger elevators and shares a fitness center with Travelers Tower I, as well as a conference center, café and art gallery.
Office sector recovery leads to more refinancing
Office lending activity continued to improve nationally, with loan originations up 47 percent year-over-year, according to a Mortgage Bankers Association report. That was the second-largest annual increase among property types, surpassed only by retail. Quarterly, originations rose 23 percent, pointing to continued momentum but at a more moderate pace.
Recent office real estate trends in Detroit point to improving occupancy condition. The metro’s vacancy rate fell 570 basis points year-over-year to 18.1 percent in September, the sharpest decline among the 25 largest U.S. markets, according to a Yardi Matrix report. Despite that, the figure remained slightly above the 17.8 percent national average. Asking rents, however, declined, dropping 3.9 percent year-over-year to roughly $20.9 per square foot.
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