$34.5M Bridge Loan & $6.2M Mezzanine Loan;

 

Property:

A two-building, 231,000 sf, class A office project in Phoenix’s 44th Street Corridor submarket.

Location:

Phoenix, AZ

Financing:

HRC’s assignment was to refinance a 2006 vintage CMBS loan, and provide additional funds for imminent lease rollover. The largest tenant is giving back half of its space early next year which will drop the occupancy to 79%. Additionally, one of the largest tenants in the building poses a credit risk as it is overleveraged. The sponsor will begin marketing the give-back space six months before it becomes available, one month after closing the new financing.

HRC arranged a non-recourse, senior bridge loan with a portfolio lender.  The floating rate loan was put into application at a maximum 67.5% stabilized LTV, with a three-year term and two one-year extension options. The loan includes a $3M future funding facility for TI’s and leasing commissions. HRC also arranged an 82.2% as-is LTV, $6.2M mezzanine loan, which includes a $425K interest reserve.  This structure gives the borrower the time and capital it needs to stabilize the building for a sale or refinance.