4-10-15

F inancial D igest F eaturing A ppraisal I nstitute

Real Estate Journal — April 10 - 23, 2015 — 7A

www.marejournal.com

M id A tlantic

HFF obtains $54.65m financing for Pittsburgh office campus

ASHINGTON, DC — DTZ has secured $45 million in fi- For 176,297 s/f class A office building in Northwest DC DTZ’s Mudd & Geiger secures $45 million in financing W

nancing for 1133 Connecti- cut Ave., a 12-story, 176,297 s/f class A office building in Northwest DC. Connecticut DeSales, LLC is a partner- ship consisting of the Lenkin Family, Lerner Enterprises and others. Executive managing direc- tor Philip Mudd and vice president Bradley Geiger of DTZ arranged the long-term fixed-rate financing on behalf of Lenkin Company. A pension fund provided the mortgage. 1133 Connecticut Ave. is located at the center of Wash- ington, DC’s Central Business District in the Golden Triangle and features many premier tenants including Wells Fargo and H&M. The building is less than one block from the Farragut North To facilitate this transac- tion, Eastern Union’s Jeff Seidenfeld negotiated a $19.5 million five year loan. Financing was arranged with Investors Bank. Eastern Union Funding ar- ranged a $20 million loan for ground up construction on 99 Morningside Ave. on behalf of Azimuth Development Group LLC. Seidenfeld brokered the loan, which covers 100% of construction costs and 90% of the client’s out of pocket costs—a loan with a storyline in its own right for what will be a game-changing piece of real estate in West Harlem. Provided by Madison Real- ty Capital , the loan features two years interest-only with an interest rate of 11.5%. “Normally, paying double digit rates is very high, and most of our construction loans are sub-five percent,” Seiden- feld said. “In this case, the fi- nal product was cheap equity.

Allegheny Center Office Complex

PITTSBURGH, PA – HFF has arranged $54.65 million in financing for the Allegh- eny Center Office Complex, a three-building campus totaling 1.22 million s/f on Pittsburgh’s North Shore. Working on behalf of Faros Properties, LLC, HFF placed the three-year, floating-rate loan with Wells Fargo Bank. Loan proceeds were used to purchase the property and make capital improvements. Allegheny Center Office Complex consists of One and Two Allegheny Square and the Concourse in addition to a parking garage with 2,550 spaces. The eight-story One Allegheny Square has 156,914 s/f, and the 13-story Two Al- legheny Square has 265,953 s/f. Tenants include PNC, Bank of America and numer- ous data center companies. Located along Pittsburgh’s

financial services profes- sional with nearly 30 years of experience in commercial real estate financing. In his new role, Doherty will be securing debt and equity on behalf of clients while work- ing closely with the invest- ment sales professionals in that office. He will report to Mike Riccio , senior manag- ing director and co-head of production, CBRE Capital Markets. “Bringing Steve on board begins an exciting new ven- ture here in CBRE’s Phila- delphia region,” said Bob Walters , executive manag- ing director, CBRE. n “Faros has done a tremen- dous job with the apartments at Allegheny Center, and their plans for the office portion of the complex are very excit- ing,” Sansosti said. “They have brought a fresh approach to the Pittsburgh commercial real estate market, and their long-term approach is positive for the assets that they have acquired.” n North Shore in the Greater Downtown Pittsburgh market, the property has a Walk Score of 91 and is blocks from the Pittsburgh Light Rail Tran- sit, known as the “T.” Faros is planning significant capital improvements to the complex. The HFF debt placement team representing the borrow- er was led by executive manag- ing director Gerard Sansosti , senior managing director Nick Matt and senior real estate analyst Tom Rieck .

1133 Connecticut Ave.

Metro station and two blocks from the Farragut West sta- tion, as well as within walking distance to the White House, the global headquarters of the International Monetary Fund, and theWorld Bank. Addition-

ally, it is directly across the street from the historic May- flower Hotel The property recently re- ceived LEED certification from the U.S. Green Building Council at the “Gold” level. n

Eastern Union Funding arranges $44.1 million BROOKLYN, NY — East- ern Union Funding ar- ranged a $19.5 million acqui- sition loan on behalf of a buyer operating as 270 Meserole Street LLC.

CBRE launches Debt & Structured Finance Practice in Philadelphia

270 Meserole Street Interior

Philadelphia, PA — CBRE Group, Inc. an- nounced that CBRE Capital

This leverage would have been impossible had we gone with a conventional bank, the cli- ent would have had to put up substantially more equity and possibly taken out a partner- ship.” WASHINGTON, D.C. — Eastern Union’s David Mer- kin , based in the firm’s Mid- Atlantic office, originated and arranged a non-recourse seven-year $4.6 million loan carrying a competitive inter- est rate. It closed with Inves- tors Bank , which is based in New Jersey, lends to a broad range of markets and consis- tently expands its banking

footprint. Merkin worked with Inves- tors to refinance this property – despite its location to the south of the Short Hills-based lender’s typical market. In do- ing so, the bank tapped into one the most thriving real estate corridors in Washing- ton DC. “This was the easiest refi- nancing I’ve ever done,” said managing member Ronald Bergman . “Today, they make you jump through a lot of hoops, but thanks to David and the team at Investors, we avoided all that – we had our ducks in a row.” n

Markets has e x p a n d e d its Debt & Structured F i n a n c e p r a c t i c e with the for- mation of a d e d i c a t e d team in the

Steve Doherty

greater Philadelphia region. Steven Doherty has been appointed senior vice president to lead the team and is based in CBRE’s Wayne, Pennsylvania, office. Doherty is a high-performing

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