Finance
DEALS of the YEAR
One of the biggest deals of the year, SL Green
Realty Corp. and SITQ Immobilier’s $1.6-bil-
lion acquisition of 388 and 390 Greenwich St.
from Citigroup, would not have been able to
take place without a $560-million senior mortgage arranged by Cushman & Wakefield
Sonnenblick-Goldman LLC’s Morton Holliday
and Alexander Hernandez. Westdeutsche
ImmobilienBank AG served as the lead
arranger and administrative agent, while PB
Capital Corp. was the co-lead arranger. The
10-year paper had a 35% loan-to-cost and
10-year interest-only period, as well as a rate of
5.19%. The 2.6-million-sf Downtown
Manhattan office property traded in December.
Bravern
HFF Arranges $684M Paper
To Finance Bravern Project
Downtown Bellevue, WA will be the
recipient of a 1.6-million-sf luxury
mixed-use project, dubbed Bravern,
thanks to a $684-million construction
loan arranged in June by Holliday
Fenoglio Fowler LP. HSH Nordbank of
Hamburg, Germany provided the funds
to the developers, Schnitzer West and
Investcorp International Inc.
Further terms of the financing were
not disclosed. However, in a statement at
the time it provided the funds, HSH
Nordbank indicated it was comfortable
putting out the capital because of the
project’s diversity, the attractive business
climate in the Seattle region and the
market’s need for the type of office and
retail space the Bravern offers.
The development will feature two
office buildings of 12 and 22 stories
totaling 750,000 sf; an upscale retail collection of approximately 305,000 sf;
and two luxury condominium towers
with 456 units. It will also include a
below-grade parking garage for 3,100
cars. The complex sits immediately
adjacent to Interstate 405, at 110th
Avenue NE.
Microsoft preleased the entire office
component, which will deliver in
October 2008 and May 2009. The retail
portion, to open in September 2009,
will have a 125,000-sf Neiman Marcus,
the first in the Pacific Northwest.
Meanwhile, the 29-story condominium
building will have one- and two-bed-room units, as well as sky lofts and penthouses. Those are scheduled for delivery in the second quarter of 2010.
Forest City Ratner Cos. took out $630 million in financing in August for the Ridge Hill
project in Yonkers, NY. A consortium of
lenders including Bank of America, Key
Bank Real Estate Capital and ING Real
Estate Finance provided the three-year,
interest-only paper, which has an LTV of
72%. Additional terms were not disclosed.
Howard Klein spoke for Forest City Ratner,
while BofA’s James Magaldi acted for the
lender. The borrower took an active role in
the syndication of the loan to 10 additional
banks. The 1.3-million-sf mixed-use center
is anticipated to open in late fall 2009.
In two separate transactions, Capmark
Finance Inc. closed on a $725-million loan
portfolio secured by 65 apartment com-plexes totaling 22,328 units in Maryland and
Virginia. The initial funding of $680.2 million
for 61 assets was completed in February,
while the remaining $44.8 million closed in
October. Capmark’s John Reed arranged
the deal for Southern Management Corp.
through Freddie Mac. Troutman Sanders
LLP counseled Capmark. With an LTV of
46%, the 10-year paper has an interest rate of
5.62%—locked two years prior to closing—a
DSC of 2.05 and amortizes over 30 years.
The
DEALMAKERS
Lender: HSH Nordbank
Borower: Schnitzer West and Investcorp
International Inc.
Intermediary: Michael J. Tepedino,
senior managing director, and Steven J.
Klein, director, Holliday Fenoglio Fowler LP
“The key to our success was an unwaveringly strong belief by institutional investors
that Bellevue is an incredible city to both
work and live in and that Bravern would
be built to the highest possible quality by
a best in class development team.”
MICHAEL J. TEPEDINO
On behalf of Equastone Real Estate
Investment Advisors, Holliday Fenoglio
Fowler LP’s Trey Morsbach and Kevin
Mackenzie obtained a $332.9-million bridge
loan from GE Commercial Finance Real
Estate for the acquisition of 13 Texas office
properties totaling 3. 1 million sf and 43 acres of
land from Crescent Real Estate Equities in July.
The three-year paper has two one-year extension options and floats over Libor.
