Sunday, November 20, 2016

MetroGroup Realty Finance Secures $50.3 Million in Financing for Two Office Assets Totaling 328,159 SF

Rendering of Office Building, Denver, CO
SAN ANTONIO, TX –– MetroGroup Realty Finance, a private commercial mortgage banking firm based in Newport Beach, CA, has successfully restructured the debt on an office building in Denver, CO and an office/flex building in San Antonio, TX. 

The new financing, which totals $50.3 million, was arranged by MetroGroup Realty Finance’s Vice President, Scott Botsford.

 “Office product in secondary markets throughout the U.S. continues to perform well, especially in high growth areas such as Texas and Colorado where job and economic growth are flourishing,” says Botsford.

“San Antonio is recognized as one of the most stable regional economies in the U.S. with unemployment rates at historic lows. In addition, the Denver metro has demonstrated consistent economic growth with unemployment rates hovering around 3.3 percent.”

According to a recent report by CBRE, the San Antonio office market experienced one of the largest declines in vacancy rates earlier this year. The Denver office market finished the third quarter of 2016 with a 12.3 percent vacancy rate, down 59 basis points from one year ago.

Chris Dornin
The sponsor, Dornin Investment Group, an institutional real estate investment firm actively buying office properties throughout the Western States, was eager to take advantage of a low interest rate environment and restructure the debt to provide future funding for leasing costs.  According to Botsford, Chris Dornin, President and CEO, selected MetroGroup Realty Finance based on its track record and creative approach to sourcing capital.
Botsford explains, “We took a unique approach to structuring the transactions in order to meet the sponsor’s overall needs. In both transactions, we recommended pairing a bridge loan and a mezzanine loan.

"In doing so we directed and guided the collaboration of two different capital sources, with no prior experience working together to provide one loan for our client. 

"This out-of-the-box approach allowed us to achieve the desired amount in equity repatriation for the partnership buyout, while at the same time securing a more competitive rate on behalf of the sponsor.”

In the first transaction, MetroGroup Realty Finance arranged a $29.9 million loan for Parkway Plaza, an 89,388 square-foot office/flex building in San Antonio, Texas. The loan included additional advances for tenant improvements and leasing commission. 

In the second transaction, MetroGroup arranged a $20.3 million loan on behalf of the same sponsor for Highland Place, a Class A, 138,771 square-foot office building in Denver, Colorado.  Both transactions were nonrecourse interest-only for three years with two one year options.

“Overall, these transactions demonstrate MetroGroup’s rich history in providing financing and structuring transactions that meet the investment objectives of our  lenders, while at the same time achieve the best terms for our clients,” adds Botsford.

For a complete copy of the company’s news release, please contact:

Lexi Astfalk or Katie Kea
Brower, Miller & Cole
 (949) 955-7940

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