By IvyLee Rosario
Walker & Dunlop closed $59 million in bridge and equity financing on behalf of Praelium Commercial Real Estate and South Street Partners for the acquisition of Newmarket Business Park in Marietta, Ga.
The debt was placed by a debt fund and arranged as a floating rate bridge loan with full-term interest-only payments. A hedge fund invested the equity.
The 471,486-square-foot, Class B office asset consists of four single-story and two two-story office buildings. Constructed between 1983 and 1985, the property was 85 percent leased at closing. Located three quarters of a mile from Interstate 75, Newmarket Business Park is surrounded by large corporate headquarters, including Home Depot, Printpack, Race Trac Petroleum, Genuine Parks and HD Supply.
Mark Strauss and Rob Quarton of Walker & Dunlop’s Irvine, Calif.-based team represented the two sponsors.
“The equity investor was attracted to the opportunity because of the potential to either create excellent cashflow during the ownership period and or provide cap rate compression benefits due to the credit quality of the lease on a potential future sale,” said Quarton, in prepared remarks.
Recently, Walker & Dunlop arranged $218 million in construction financing for the development of JW Marriott Bonnet Creek, in Orlando’s Walt Disney World.
Image courtesy of Walker & Dunlop