Grandbridge Real Estate Capital's Milwaukee office originated and closed a $63.25 fixed-rate loan secured by Murray Business Center, a 332,000 square-foot suburban office building located in Beaverton, Ore.
Funding for the transaction was provided by TIAA-CREF. The loan was made at 98% of appraised value with an interest rate of 5.61% 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.
‘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,’ says Rob Meister, vice president at Grandbridge. ‘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.’
SOURCE: Grandbridge Real Estate Capital