The Debt & Equity Finance Group arranged $41 million in acquisition and repositioning financing for 1110 American Parkway NE, a 563,000-square-foot, Class-A office building in the heart of Pennsylvania’s fast growing Lehigh Valley.
Media Contact: Shlomo Morgulis Beckerman
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Mission Capital Advisors Arranges Nearly Full-Leverage Financing ($41
for Class-A Lehigh Valley Office Property
Leading Real Estate Advisory Firm Enables Acquisition and Lease-Up of 1110 American Parkway NE in Allentown, PA
ALLENTOWN, Penn. (March 17, 2015) — Mission Capital Advisors, a leading real estate capital advisory firm, announced that its Debt & Equity Finance Group arranged $41 million in acquisition and repositioning financing for 1110 American Parkway NE, a 563,000-square-foot, Class-A office building in the heart of Pennsylvania’s fast growing Lehigh Valley.
The Mission Capital team of Jonathan More, Alex Draganiuk and Axel DeAngelis represented Patriot
Equities on an exclusive basis in securing the financing.
“Our team was tasked with the challenge of arranging full leverage financing on a short-fuse acquisition with 40 days to close. We were also presented with a host of moving parts and unknowns, such as substantive property lease-up during the contract period, including post-lender term sheet execution prior to loan closing, which required additional negotiation and capital source flexibility,” said More. “The Property itself is the top suburban office asset in Pennsylvania. The Sponsor succeeded in tying it up directly off-market at a very attractive basis after 10 years of courting the seller. Patriot Equities’ institutional-quality sponsorship, along with aggressive and exemplary leasing prowess during the contract period, helped our team craft the right story needed to nearly full-leverage financing.”
The 2002-built, Class-A office property was developed by a subsidiary of Lucent, an AT&T joint venture, which spared no expense in creating this best-in-class asset with top-tier infrastructure and amenities. Upon acquisition, Patriot Equities is set to invest approximately $7 million in capital improvements, including renovations to the lobby and common areas. The sponsor will also initiate tenant improvements for the 475,000 square feet of leases negotiated and executed during the contract period.
“With Patriot Equities’ reputation as a premier real estate investor and the excellent condition of this Class-A property, we received significant interest from wide array of capital sources,” said Draganiuk, a Lehigh Valley native with an intimate knowledge of this strategically located submarket and the Lehigh Valley’s continued growth and evolution as an increasingly substantial market. “Ultimately, we were able to effectively portray the story of an extremely attractive investment basis in a well-located, one-of-a-kind asset with top quality institutional sponsorship. This enabled us to successfully arrange very favorable nearly full-leverage financing at an all-in blended interest rate in the mid-single digits with a small equity participation.”
Mission Capital is extremely active in arranging highly structured financing nationally. Recently, the firm
has been very active in the Northeast, Midwest and Western United States. Recent transactions arranged by Mission include financings for three hotels in Chicago; financing for office properties in Manhattan and the Bronx, NY; a multifamily project in Indianapolis; and separate financing for retail shopping
centers in Detroit, Troy and Farmington Hills, Michigan. The firm is also currently arranging financing for large construction and renovation projects in the Northeast and Florida, including a $200MM ground-up non-recourse construction loan and a $25MM office acquisition/renovation loan.
About Mission Capital Advisors
Founded in 2002, Mission Capital Advisors, LLC is a leading real estate capital advisory firm with offices in New York City, Florida, Texas, California and Mobile, Alabama. The firm delivers value to its clients through an integrated platform of advisory and transaction management services across commercial and residential loan sales; debt, mezzanine and JV equity placement; and loan portfolio valuation. Since its inception, Mission Capital has advised a variety of leading financial institutions and real estate investors on more than $45 billion of financing and capital markets transactions, positioning the firm strongly to provide capital markets financing and solutions. Mission Capital’s seasoned team of industry-leading professionals is committed to achieving clients’ business objectives while maintaining the highest levels
of integrity and trust. For more information, please visit www.missioncap.com.