HFF arranged $110.64 million in financing for a five-property office and industrial portfolio totaling 889,805 s/f in New Jersey, North Carolina, Ohio, Texas, and Arizona.
HFF worked exclusively on behalf of Griffin Capital Corporation and five single-purpose borrowing entities, wholly owned by the operating partnership of Griffin Capital Essential Asset REIT, Inc., to arrange the 15-year, 4.96 percent, non-recourse, fixed-rate loan through two life companies.
Loan proceeds were used to pay down an existing credit facility and secure long-term fixed-rate financing at approximately 60 percent loan-to-value.
The portfolio is cross-collateralized, cross-defaulted, and substantially leased to investment-grade or investment-grade quality tenants with staggered lease expirations.
Individual properties include the 210,524 s/f Verizon Building in Warren, NJ.
The HFF team representing the borrower was led by senior managing director Kevin MacKenzie and director John Chun, along with regional support from managing directors Stephen Skok and Tucker Knight and director Michael Klein.
“The strong sponsorship, quality of the assets, and the credit of the tenants made this an attractive opportunity to the debt markets. By utilizing these merits through an extensive marketing process, we were able to identify the best solution for the portfolio including the necessary flexibility to achieve Griffin’s business plan,” said MacKenzie.
“We are pleased to have completed this long-term, fixed-rate secured debt transaction with the lender,” said Joseph E. Miller, chief financial officer of Griffin Capital Corporation, the sponsor of Griffin Capital Essential Asset REIT, Inc.
“With this financing transaction, we reduced our short-term, secured debt obligations and lengthened our debt maturities to more closely align with our weighted average lease duration.”
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