January – Briefs/Finance

4 min read

Hunt Completes Acquisition of Centerline Holding Co.; U.S. Bank Provides $263M for 2 Medical Office Portfolios; C&W Arranges $275M for Historic NYC Tower; Mesa West Raises $752M for Debt Fund; MetLife Provides CBRE with $161M for Marathon Oil Tower; Hillwood, Sovereign Wealth Fund Wrap First Closing of $1B Industrial Venture; Walker & Dunlop Launches CMBS/High-Yield Lending Platform; Meridian, Beech Street Arrange $90M in Financing for M-F Portfolio in Orange County, Calif.

Hunt Completes Acquisition of Centerline Holding Co.

Hunt Cos. has completed its previously announced merger with Centerline Holding Co. Transaction terms involve an affiliate of Hunt becoming, through a merger, the sole holder of Centerline’s common shares. Following the deal, Centerline will operate as a Hunt subsidiary.

In connection with this transaction, Hunt gains a national mortgage-banking platform offering Fannie Mae, Freddie Mac, HUD/FHA, CMBS and other debt products while servicing $12.4 billion in loans. The transaction also significantly expands Hunt’s affordable housing asset management business by adding $9.2 billion in investor equity under management in 113 funds comprising approximately 138,000 units. This makes Hunt the largest owner of multi-family units in the nation.

U.S. Bank Provides $263M for 2 Medical Office Portfolios

Two large medical office portfolios in California have been refinanced, thanks to U.S. Bank and Jones Lang LaSalle Inc. U.S. Bank provided the first portfolio—composed of five medical office and retail properties in the Golden Triangle district of Beverly Hills—with $176.5 million in financing. The second portfolio included three medical office buildings in major Southern California markets and received a $63.5 million loan via U.S. Bank. Jones Lang LaSalle worked as the broker for both transactions. Healthcare owner and manager G&L Realty Corp. owns both portfolios.

C&W Arranges $275M for Historic NYC Tower

Cushman & Wakefield Inc. has served as the exclusive advisor to an affiliate of SL Green Realty Corp. in arranging a $275 million, seven-year senior mortgage loan for 220 E. 42nd St. in New York. Wells Fargo provided the financing for the 37-story, 1.2 million-square-foot office building, which is also known as the News Building. Completed in 1930, the asset served as the headquarters of the New York Daily News until 1995. In 1989, it was designated a National Historic Landmark. Current major tenants include Omnicom Group, law firm Martin Clearwater & Bell, television station WPIX and the United Nations.

Mesa West Raises $752M for Debt Fund

Mesa West Capital has closed its Mesa West Real Estate Income Fund III L.P. with $752 million in equity commitments. The firm exceeded its target goal of $650 million. This is the second time Mesa West has well exceeded a fund target. In 2010, Real Estate Income Fund II L.P., which had a $400 million target, raised $614.5 million through equity commitments. Since its founding in 2004, Mesa West Capital has originated more than $4 billion in non-recourse first mortgage debt for the acquisition, refinancing and recapitalization of transitional institutional-quality commercial real estate assets throughout the United States.

MetLife Provides CBRE with $161M for Marathon Oil Tower

MetLife Inc. has closed $161.5 million in financing for CBRE Strategic Partners U.S. Value 6 in connection with the fund’s acquisition of the Marathon Oil Tower in Houston. The Class A, LEED Silver-certified tower contains 1.2 million square feet of office space in Houston’s Galleria submarket. CBRE Strategic Partners U.S. Value 6 is sponsored by CBRE Global Investors. The 562-foot, 41-story tower was built in 1981. The tower contains the headquarters of Marathon Oil and is also the home of Aon Corp.’s Houston offices.

Hillwood, Sovereign Wealth Fund Wrap First Closing of $1B Industrial Venture

Hillwood and a major sovereign wealth fund have completed the initial closing of a new fund with more than $200 million in commitments for investment in industrial real estate across North America. The partners expect to ultimately raise an aggregate $400 million, which they intend to leverage for $1 billion in acquisitions and development over the next three to four years. Hillwood—charged with overseeing acquisitions, developments and joint ventures—is eyeing January for the fund’s first buy. Large warehouse properties are the fund’s main target. While all of North America will be its playground, Hillwood will focus on larger markets in the Northeast and Southern California, plus the Atlanta, Dallas and Memphis metropolitan areas.

Walker & Dunlop Launches CMBS/High-Yield Lending Platform

Walker & Dunlop Inc. and an affiliate of a fund managed by Fortress Investment Group have entered into a joint venture to form a CMBS lending platform that will provide financing for multi-family and other CRE properties nationwide. The JV will be named Walker & Dunlop Commercial Property Funding L.L.C. and will provide first mortgage loans on all commercial property types and also originate high-yield whole loans, mezzanine debt and preferred equity. Headquartered in New York, the venture will be overseen by Tim Kolterman, senior vice president & group head of CRE originations and operations at Walker & Dunlop Inc.

Meridian, Beech Street Arrange $90M in Financing for M-F Portfolio in Orange County, Calif.

Meridian Capital Group L.L.C. joined forces with mortgage banking company Beech Street Capital L.L.C. to better position themselves for arranging refinancing featuring a no-cost forward rate lock at application for a 982-unit multi-family portfolio in Orange County, Calif. The two have emerged victorious, meeting the borrower’s needs with $90.4 million in loans from a life insurance company lender. The borrower was in a hurry to capitalize on low interest rates and willing to give a little–approximately $10 million of prepayment penalty–to get a lot. The five-property portfolio is located in the cities of La Habra, Fullerton, Anaheim, Costa Mesa and Buena Park.

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