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

Jackmont Hospitality Inc. and Ludacris Open New Restaurant at Atlanta’s Hartsfield-Jackson International Airport

Chris 'Ludacris' Bridges
ATLANTA, GA – Jackmont Hospitality, Inc., in partnership with notable entertainer and restaurateur Chris ‘Ludacris’ Bridges, reveals Chicken+Beer, named for Ludacris’ third album, at Concourse D of Atlanta’s Hartsfield-Jackson International Airport.

The highly anticipated, 90-seat restaurant is Jackmont Hospitality, Inc.’s second independently developed concept at Hartsfield-Jackson International Airport following One Flew South which opened nearly a decade ago and became the first airport restaurant in the U.S. to be a contender for the prestigious James Beard Award.

Chicken+Beer serves Southern-style comfort food and locally sourced beers parallel an ambient cool vibe from the playlist to the bold wall art reminiscent of graffiti and album covers.

Daniel Halpern, CEO and Co-founder of Jackmont Hospitality Inc., consistently places a premium on celebrating the importance of locally developed concepts. Chicken+Beer will speak to the distinctions of minorities in the hospitality industry and empower the cultural and social landscape not only in Atlanta, Georgia but internationally as part of the world’s busiest airport. 

Daniel Halpern
Halpern specifically sought out Bridges’ partnership to liaise with the Atlanta community and restaurant industry.

"For over 20 years, the Jackmont Hospitality name has been synonymous with delicious food, warm hospitality and a steadfast commitment to excellence. Chris is the quintessential advocate for Atlanta’s rich culture and together we aim to introduce Chicken+Beer as a reflection of the city’s character," said Halpern

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

Elizabeth Moore, Partner Green Olive Media (404) 815-8327 ext 5000

Stos Partners Acquires San Diego Industrial Building; Secures Long-Term Lease with Credit Tenant

CJ Stos
SAN DIEGO, CA – Stos Partners, a privately held commercial real estate investment and management firm, has acquired a 91,541 square-foot single-tenant industrial building situated on 6.12 acres in San Diego’s National City submarket for $12.225 million. During escrow, the firm secured a long-term lease with a credit tenant.

 “This transaction is a win for us in many ways,” says CJ Stos, Principal of Stos Partners.  “The property was a rare find - a vacant industrial facility in close proximity to freeways and ports with approximately three acres of excess land.

“ We recognized the potential from the beginning, and seized the opportunity to acquire the asset as a vacant property.  Our instincts were strong, and we were able to lease it prior to our escrow closing.”

In fact, Stos confirms, his firm garnered multiple offers from industrial tenants while the property was still in escrow.

            “The functionality, location and size of this property is appealing to large credit tenants who continue to have difficulty finding facilities with these attributes in this market,” he says. 

Rusty Williams, SIOR, a Principal with Lee & Associates who represented Stos Partners as the buyer in this transaction, notes, “Industrial vacancy continues to tighten throughout San Diego county, making quality, well-located industrial properties difficult for both tenants and investors to secure.”

Rusty Williams
The National City submarket has demonstrated robust growth in the past year, with vacancy rates dropping to a mere 2.6-percent in recent months.

“This market climate fuels off-market transactions, as investors seek to remain ahead of the competition,” Williams explains.  “In this case, we sourced the opportunity before it hit the market and presented it to Stos Partners, who was able to commit and follow through.”

Stos Partners plans to invest in significant capital improvements for the facility.  The firm will add a new roof, new exterior paint, and new landscaping, and will upgrade the parking lot and HVAC system.

“We continue to create value in the assets we acquire, as we actively grow our portfolio throughout Southern California,” says Stos, who notes that his firm currently has approximately 2,000,000 square feet in assets under management.  “Successful real estate investments come from the core fundamentals, which are the improvements, location, tenancy, economics and operations.  By focusing on these, we continue to maximize returns while minimizing risk.”

            The property is located at 901 Bay Marina Drive in National City, California.  The seller, a public company, was represented by Chris Holder, SIOR, of Colliers International.

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

Lauren Burgos / Jenn Quader
Brower, Miller & Cole
(949) 955-7940