F inancial D igest

Real Estate Journal — February 12 - 25, 2016 — 5A


M id A tlantic

Loan provides enhanced flexibility and capital Mack-Cali closes $350m unsecured term loan

HFF secures $63.5m financing for multi-housing development

DISON, NJ — Mack- Cali Realty Corpora- tion announced that it has successfully closed on a new $350 million unsecured term loan, which matures in January 2019 with two one- year extension options. The interest rate for the new term loan is currently 140 basis points over LIBOR, subject to adjustment on a sliding scale based on the Company's unse- cured debt ratings, or at the Company's option, a defined leverage ratio. Mack-Cali en- tered into interest rate swap arrangements to fix LIBOR for the duration of the term loan. Including costs, the loan provides for a current all-in fixed rate of 3.12%. There is no premium or penalty as- E DUNDA LK , MD — Greystone , a real estate lending, investment and advisory company, today announced it has provided a $26 million bridge loan for the acquisition of Three Garden Village Apartments in Dundalk, MD – Baltimore County. The loan was origi- nated by Donny Rosenberg of Greystone. The bridge loan, provided to The SilverBrick Group , carries a two-year term with two six-month extension op- tions. The loan was closed in less than 30 days. Three Gar- den Village Apartments is a 592-unit rental community in Baltimore County consist- ing of brick townhomes and garden style apartments on landscaped grounds with multiple amenities. The Sil- verBrick Group will be re- branding the property under its new name SilverBrick Townhomes. “The SilverBrick Group’s unique investment process and approach to acquisition aligned perfectly with our ability to provide an out- of-the-box, balance sheet bridge financing solution,” said Mark Jarrell , executive vice president and head of Greystone’s Portfolio Lend-

sociated with full or partial prepayment of the term loan. Proceeds from the term loan are being used primar- ily to repay the Company's $200 million, 5.8% unsecured bonds scheduled to mature on January 15, 2016, and to pay down outstanding borrowings on its $600 million unsecured credit facility. Merrill Lynch, Pierce, Fenner & Smith Incorpo- rated, J.P. Morgan Securi- ties, LLC, and Wells Fargo Securities, LLC served as the joint lead arrangers for the term loan. Bank of America, N.A. served as administra- tive agent; JPMorgan Chase Bank, N.A., Wells Fargo Bank, N.A., and Capital One, National Association served

as syndication agents; and US Bank National Associa- tion served as documentation agent. Other participants in the loan were PNC Bank, National Association and Ci- tibank, N.A. "With our bank group, Mack-Cali has successfully executed this new unsecured term loan and swapped to a fixed rate for a five year pe- riod. The $350 million term loan provides an attractive source of capital and results in an anticipated new debt maturity in 2021. The debt cost represents significant interest savings to the 5.8 percent bonds maturing this month," said Tony Krug , Mack-Cali’s chief financial officer. n

207 Van Vorst rendering

terfront district. The property will offer views of Manhat- tan, the Statue of Liberty and nearby marinas, and will be the first of a two-phase project that, once complete, will en- compass two adjacent 15-story residential buildings totaling 408 units. Due for completion in 2017, Phase I of the project will have a mix of studio, one-, two- and three-bedroom units and two ground-floor retail spaces totaling 7,237 s/f. Com- munity amenities will include a rooftop swimming pool, fit- ness center, 24-hour concierge, landscaped courtyard, club room, children’s playroom and a 254-space AutoMotion park- ing system. The HFF debt placement team representing the borrow- er was led by senior managing director Thomas Didio . n

JERSEY CITY, NJ — Hol- liday Fenoglio Fowler, LP (HFF) announced that it has secured $63.5 million in fi- nancing for the development of 207 Van Vorst, a proposed 255- unit, 15-story luxury multi- housing community in Jersey City. HFF worked on behalf of 207 Van Vorst Street Re- alty Company LLC , a joint venture between institutional investors advised by J.P. Morgan Asset Management – Global Real Assets (J.P. Morgan) and Fields Devel- opment Group (Fields) , to place the construction loan with Wells Fargo Bank . The property is being devel- oped on a 0.87-acre site situ- ated on Van Vorst St. in the historic Paulus Hook section of Jersey City’s downtown wa- FALLS CHURCH, VA — Eastern Union Fund- ing, a top-10 commercial real estate debt brokerage based in Brooklyn, NY, arranged financing for the $6.75 million acquisition of 7121 Leesburg Pike, a two-story office and retail center in Falls Church. The property consists of five ground-level retail condos and nine second-story office condos. Eastern Union Funding’s Marc Tropp , a senior man- aging director based in the firm’s Bethesda, MD office, negotiated a $4.25 million, seven-year deal fixed at 4.3% with six months interest only. Tropp brokered the loan with regional balance sheet lender

Greystone closes $26m bridge loan in under 30 days for MD Multifamily Property Acquisition

Eastern Union Funding arranges $6.75m financing for purchase of office/ retail space in Falls Church, VA

Three Garden Village Apartments

ing Group. Erik Dowling , principal & director of capital sourc- ing, The SilverBrick Group, added, “Greystone proved themselves a trusted part- ner in real estate financing, exhibited by the smooth pro- cess they led us through. We see a great deal of value-add potential and plan to unlock it beginning with an initial $4 million in renovations on the property. This will represent Phase 1 of what will ultimately be an aggre- gate $12mm transformative renovation of this asset. We could not have initiated those

plans without the crucial interim financing we closed with Greystone.” “Part of our acquisition strategy entails seeking op- portunities in mismanaged properties where reposition- ing can unlock hidden val- ue,” said Aaron Papowitz , Founding and managing principal, The SilverBrick Group. “Greystone was able to help with the realization of our niche-market strategy through an interim financing solution and we look forward to a long-term relationship with the company as a pre- ferred lender.” n

Burke & Herbert Bank on behalf of 7121Metrowest LLC. “We were able to broker an excellent deal by partnering with a regional lender and working in a timely fashion. That we could lock in such a competitive rate - literally within hours of the federal rate hike - made the final prod- uct that much more exciting for all parties involved,” said Tropp. n 7121 Leesburg Pike

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