Project Overview
Project Overview
Project Overview
Location
Stamford, CT
Location
Stamford, CT
Loan Amount
$235,000,000 sale | $210,000,000 financing
Loan Amount
$235,000,000 sale | $210,000,000 financing
Asset Type
Class-A Office
Asset Type
Class-A Office
Transaction Challenges:
» Sponsor had fixed amount of equity but was determined to close on the acquisition, requiring a high leverage solution (90% of Purchase Price) » We were required to deliver $210MM of financing under a very tight timeframe with a TOE date. (Approx 30 days from term sheet to close). » Ground Lease REIT and Debt Fund execution required careful negotiation and coordination (One Fee Purchaser, One Leasehold Lender)
Transaction Challenges:
» Sponsor had fixed amount of equity but was determined to close on the acquisition, requiring a high leverage solution (90% of Purchase Price) » We were required to deliver $210MM of financing under a very tight timeframe with a TOE date. (Approx 30 days from term sheet to close). » Ground Lease REIT and Debt Fund execution required careful negotiation and coordination (One Fee Purchaser, One Leasehold Lender)
ArrowREA Solution:
» The team ran a comprehensive marketing process to procure a creative bifurcation strategy where the fee position was sold to Safehold for $100,000,000 in exchange for a $2,900,000 Ground Rent and leasehold ownership in the property (2.90% Cap Rate). A debt fund provided a $110,000,000 Senior Leasehold Mortgage, $105,000,000 of which was funded at closing and $5,000,000 remains for TI/LC future funding. The aggressive structure allowed our client to close the transaction with minimal equity needed.
ArrowREA Solution:
» The team ran a comprehensive marketing process to procure a creative bifurcation strategy where the fee position was sold to Safehold for $100,000,000 in exchange for a $2,900,000 Ground Rent and leasehold ownership in the property (2.90% Cap Rate). A debt fund provided a $110,000,000 Senior Leasehold Mortgage, $105,000,000 of which was funded at closing and $5,000,000 remains for TI/LC future funding. The aggressive structure allowed our client to close the transaction with minimal equity needed.
We partner with investors and developers to unlock optimal financing by leveraging our deep network of capital providers and delivering strategies tailored to each opportunity.
We partner with investors and developers to unlock optimal financing by leveraging our deep network of capital providers and delivering strategies tailored to each opportunity.
We partner with investors and developers to unlock optimal financing by leveraging our deep network of capital providers and delivering strategies tailored to each opportunity.