Grandbridge Closes $63,252,397 Single Credit Tenant Loan

Published On: 09.20.10

MILWAUKEE—Grandbridge Real Estate Capital's Milwaukee, Wis., office originated and closed a $63,252,397 fixed-rate loan secured by Murray Business Center, a 332,000 square foot suburban office building located in Beaverton, Oregon.

Funding for the transaction was provided by TIAA-CREF.  The loan was made at 98 percent of appraised value with an interest rate of 5.61 percent fixed for the entire 21.3-year loan term.  The transaction features an initial 39-month interest-only component with negative amortization which converts to an 18-year amortization.  Grandbridge Vice President Rob Meister arranged the financing on behalf of a long-time client.

“The foundation of this and every other single credit tenant deal is the tenant's unsecured public debt rating coupled with the terms of the lease. In this case, the tenant had an excellent AA rating, and the lease they executed was absolute net.  These items combined to allow the lender, TIAA-CREF, to offer maximum proceeds at a low rate,” explained Meister.

“This transaction was structured with a number of escrows to maximize the loan amount in spite of the asset's unusual tenancy.  Specifically, the main tenant currently occupies 72 percent of the property with an unrelated non-credit tenant occupying the remaining 28 percent until September 30, 2013, at which time the main tenant takes over the entire building. The non-credit tenancy required that escrows be established at closing for operating expenses and an interest reserve,” Meister added.

Charlotte, N.C.-based Grandbridge, a subsidiary of BB&T Corporation, has a broad investor base that includes insurance companies, pension fund advisors, commercial banks and capital markets investors, as well as a proprietary lending platform.

The company is a Freddie Mac Program Plus® Seller/Servicer and Targeted Affordable Housing lender and a Fannie Mae Delegated Underwriting and Servicing (DUS®) lender. Grandbridge is also a MAP multifamily and LEAN healthcare approved participant in products insured by the Federal Housing Administration (FHA).

 

BUSINESS CONTACT
Thomas S. Dennard
Grandbridge CEO    
(704) 379-6910
tdennard@gbrecap.com    

TRANSACTION CONTACT
Rob Meister
Vice President
262.785.8441 
rmeister@gbrecap.com

MEDIA CONTACT
Patricia Muse
Vice President | Marketing
(205) 978-1139
pmuse@gbrecap.com