November – Briefs/Finance

SL Green JV Recaps 4.5 MSF SoCal Portfolio

SL Green Realty Corp. has formed a joint venture to recapitalize a 31-property, 4.5 million-square-foot office portfolio in Southern California. With an investment of $85 million, an affiliate of Blackstone Real Estate Partners VII became the majority owner of the JV that also includes Gramercy Capital Corp. and Square Mile Capital Management L.L.C.

The extended $678.8 million mortgage financing was led by New York Life Insurance Co. and four lenders: DekaBank Deutsche Girozentrale, Westdeutsch ImmobilienBank AG, Muenchener Hypothekenbank eG and Wells Fargo Bank. Goldman, Sachs & Co. was advisor to SL Green, Gramercy and Square Mile.

Regency Centers Increases Unsecured Credit Facility to $800M

Regency Centers Corp. has amended its existing unsecured revolving credit facility and increased its capacity by $200 million to $800 million. The amended facility bears interest at an annual rate of LIBOR plus 140 basis points, which includes a 22.5-basis-point facility fee. The maturity date was also extended by a year to expire in September 2016, though the company retains a one-year extension option. Wells Fargo Securities L.L.C. and PNC Capital Markets L.L.C. acted as joint lead arrangers and joint book managers.

Prestige Refinances 517 KSF Bronx Retail Center

Prestige Properties & Development Co. has closed a $210 million refinancing of Bay Plaza Community Center, a 517,000-square-foot retail property located within the real estate company’s 1.3 million-square-foot Shopping at Bay Plaza complex in the Bronx, N.Y. MetLife’s Real Estate Investments Division supplied the financing in the form of a five-year, fixed-rate loan bearing a sub 4 percent interest rate. The retail asset is currently 96 percent occupied and operates with a net income exceeding $22 million. The deal comes on the heels of Prestige’s groundbreaking for the Mall at Bay Plaza, a $300 million enclosed fashion mall that will add 780,000 square feet to the complex.

Beech Street Provides $152M Loan for Maryland M-F

Beech Street Capital has provided a Fannie Mae loan of $152 million to refinance Archstone Wisconsin Place, a 432-unit apartment community located in Chevy Chase, Md. The 2008-built asset is part of Wisconsin Place, a mixed-use development that also has office and retail space. The firm worked closely with Archstone and Fannie Mae to close the loan before the maturity date of the existing loan.

Walker & Dunlop Closes $67.5M for Virginia High-Rise

Walker & Dunlop Inc. has arranged $67.5 million in financing for Huntington Gateway Apartments, a high-rise residential asset located in Alexandria, Va. New York Life Insurance Co. provided the loan, which was structured with a 10-year term and a 30-year amortization for the borrower, Huntington Apartment Associates L.P. The 447,712-square-foot asset features 443 units and 30,000 square feet of retail space.

HFF Sources $170M for Boston Office Development

Holliday Fenoglio Fowler L.P. has arranged a $170 million construction loan for One Channel Center, a 500,000-square-foot office building currently being developed by AREA Property Partners and Commonwealth Ventures in Boston’s Seaport District. The property will feature an 11-story, Class A building leased in its entirety to State Street Corp. Ground broke this past summer, and delivery is slated for early 2014.

MetLife Provides $80M for Suburban Boston Complex

Financing to the tune of $80 million has been put in place for an approximately 452,000-square-foot office complex in Waltham, Mass. The borrower, an affiliate of Davis Marcus Partners, relied on Holliday Fenoglio Fowler L.P. to orchestrate the financing, which was provided by MetLife Real Estate Investments. The properties involved in the transaction sit within the Reservoir Woods West Campus, a business park located less than 20 miles from Boston.

Spirit Realty Capital Prices IPO

Spirit Realty Capital, a Scottsdale, Ariz.-based triple-net-sector REIT, launched an initial public offering on Sept. 20 that raised approximately $435 million, to be used primarily to pay off $399 million in debt. The company priced 29 million shares of common stock at $15, lower than the $16 to $18 per share it had projected in its prospectus filed Sept. 10 with the SEC. At that time, Spirit Realty had also planned to issue about 27 million shares. The company trades under the symbol SRC.