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Deals & Dealmakers

MLK arranges joint venture, bridge loan for New Jersey office park acquisition

MLK Real Estate Capital arranged a Joint Venture and $27.13 million of bridge financing for the acquisition of Mount Kemble Office Park in Morristown, New Jersey.

The 230,000 s/f class-A office space is located across two buildings at 350-360 Mount Kemble.
MLK represented The Birch Group, a New York-based real estate operator, and arranged for Joint Venture between Birch Group and Vision Properties, which will be managing the property on a day-to-day basis.

Los Angeles-based Thorofare Capital, through its private debt platform provided $27,130,500 in intermediate-term, first mortgage debt.

The property was acquired for $35 million and is currently 81 percent occupied by a tenant base with a weighted average lease term of seven years.

The sponsor plans to lease the remaining available space by investing in capital expenditures and tenant improvements at the property.

MLK’s managing principal Solomon Kinraich commented, “This was a compelling transaction for us to represent due to the attractive in-place tenant mix secured by long term leases, very favorable demographics of the office submarket in Morristown and value-add business plan that will be implemented by the new ownership group.”

Felix Gutnikov, Head of Origination at Thorofare Capital, said, “We were attracted to opportunity given the local expertise and hands-on management capabilities of Vision Group, led by Fred Arena, combined with the balance of ample existing cash-flow, minimal near-term rollover risk and additional upside through leasing of nearly 40,000 square feet in this high quality asset.

“We have significant capacity to grow our loan portfolio by competitively pricing deals like this, where experienced sponsors are executing value-add business plans for well-located transitional properties.”

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