Holliday Fenoglio Fowler worked on behalf of Denholtz Associates to arrange $11.35 million in interim financing for Pinellas Business Center, a 205,032 s/f light industrial complex in St. Petersburg, Florida.
HFF worked on behalf of the owner, Denholtz Associates, to place the three-year, floating-rate loan with a fund managed by global credit manager Marathon Asset Management, L.P.
Loan proceeds will be used to complete the capital improvement and leasing plan instituted by Denholtz Associates.
Completed between 1985 and 1986, Pinellas Business Center comprises six one-story buildings leased at closing to a variety of tenants, including IDEXX Reference Labs, NDH, Sensidyne, Symphoni Group, Litewave Media, Pan Medical and Curant Health.
The center features floor plates ranging in size from 15,412 to 65,221 square feet, clear heights between 16 and 18 feet, 65 percent office finish, 48 overhead loading doors at the rear of each building and dock-high loading doors in two of the buildings.
The HFF team was led by managing director Michael Klein, director Preston Reid and senior managing director Jon Mikula.
“Denholtz Associates had numerous leases in play that would stabilize the property prior to closing, but needed a little more time for them to come to fruition,” Klein said.
“As a result, HFF was able to secure an interim loan that would provide the borrower with the flexibility it needed to finalize its business plan and address the looming maturity of its existing loan. Marathon excels at loans with strong in-place cash flow and a short closing time frame. They were great to work with and were able to close the loan in approximately 30 days.”
“Taking advantage of opportunistic financing and refinancing of assets in our portfolio is a crucial piece of the Denholtz investment strategy,” said Stephen Cassidy, President of Denholtz Associates.
“At the current low interest rates, we saw an opportunity to secure refinancing on the Pinellas Business Center that would enable us to lock in more favorable financing while providing us with the cashflow needed to continue with important tenant improvements. Our commitment to improving the property will ensure that it remains an in-demand location for tenants and a valuable piece of our multi-tenant, risk-adjusted investment strategy for years to come.”
