Jones Lang LaSalle

$25M Finances Two Office Buildings
By Eric Peterson
Last updated: February 8, 2006 09:59am

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ROCKLEIGH, NJ-In two separate transactions, the White Plains-based Houlihan-Parnes/iCap Realty Advisors has arranged financing for buildings owned by GHP Office Realty. The latter, also based in White Plains, was formed in 1999 by principals of Houlihan-Parnes/iCap and Andrew Greenspan.

In the larger of the two transactions, Houlihan-Parnes’ Kevin Neuner arranged a $14-million first mortgage on the two-story, 194,000-sf office building on 12 acres at 8 King Rd. here. The 10-year loan is fixed at 5.63%, with two years of interest-only payment followed by a 30-year amortization, according to Neuner. The non-recourse loan was placed without a lender fee.

Built in 1973 and recently renovated, the multi-tenant GHP-owned and -managed property is currently 95% leased. As reported by GlobeSt.com, Spectra East, a subsidiary of Germany’s Frensenius Medical Care, renewed its existing lease of 85,000 sf and expanded to a total of 106,000 sf at the building in December. Other tenants include the New York Times, and 3M Medical Equipment.

In the second transaction, Houlihan-Parnes’ Gus Costaldo arranged a $10.5-million first mortgage loan for the refinancing and renovation of GHP’s 29 Thanet Circle, a 53,000-sf office building in Princeton. According to Costaldo, the loan terms consist of a floating interest rate of 30-day Libor plus 250 basis points, interest only, with a two-year term. The loan represents 75% of the asset’s appraised value, allows for an extension and can be prepaid without penalty.