JV Lands $280M Refi for Long Island Portfolio
The collection includes 14 office and medical office properties.
A joint venture between TPG Angelo Gordon and The WE’RE Group has completed a $280 million refinance of a 14-property medical office and suburban office portfolio totaling about 1.51 million square feet across Long Island, N.Y.
Nomura and Citigroup provided the funding, and Newmark arranged the transaction.
The portfolio consists of 14 assets across the submarkets of Lake Success, Jericho and Melville, along the Long Island Expressway corridor. Currently 86 percent leased, the collection has a tenant roster of more than 75 occupiers and a weighted average remaining lease term of 5.3 years.
About 58 percent of the portfolio’s rentable area is dedicated to medical office use, with ownership actively repositioning select traditional office assets to medical office space, according to Newmark.
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Further information on the specific assets was not disclosed, nor were details on the intended repositioning of conventional office space into medical office.
The portfolio is anchored by a roster of investment-grade and health care-related tenants, Newmark stated, including affiliates of ProHealth, Northwell Health, NYU Langone School of Medicine, New York Blood and Cancer, and Catholic Health.
The Newmark Global Debt & Structured Finance team that arranged the funding consisted of Co-Head Jordan Roeschlaub, Vice Chairman Chris Kramer, Director Tim Polglase, Associate Director Dan Axelson and Associate Niv Shahmoon.
Long Island office market continues rebound
Long Island’s office market currently has a 12.0 percent availability, its lowest in more than five years, and no new office space is under construction, according to a first-quarter report from Newmark.
Lease transactions in the first quarter showed a shift toward smaller deals. The quarter’s largest lease was ION’s 32,000-square-foot renewal at 626 RexCorp Plaza in Nassau County.
Last August saw an even larger lease, when Esquire Financial Holdings signed a new 50,000-square-foot lease at 300 Jericho Quadrangle in Jericho, N.Y. The 274,648-square-foot office building is owned by TPG. Sabre Real Estate Group brokered the 12-year lease.
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