Miami, FL – May 2, 2016 – CBRE Capital Markets’ Debt & Structured Finance team arranged $20 million in acquisition financing for Riverchase Center, a 306,275-square-foot office complex in Hoover, Alabama.
Charles Foschini and Christopher Apone of CBRE’s Miami, Florida, office arranged the loan on behalf of Adler-Kawa and PointOne Holdings, two long-standing clients who ventured on the deal. A national money center bank provided the financing at a floating rate with a seven-year term and 65% loan-to-value (LTV) ratio.
“Despite the recent market volatility, we were able to maintain a competitive lending environment due to the high quality of the asset and sponsors,” said Mr. Foschini, Vice Chairman, CBRE Debt & Structured Finance. “Both of the borrowers are experienced, fund-based owner-operators based out of Miami.”
“For sponsors with ready equity capital, bank financing can provide an extremely low cost of funds with incredible flexibility,” said Mr. Apone, Senior Vice President.
Built between1985 to 1988, the property encompasses eight single-story buildings at 2100-2300 Riverchase Center in proximity to various corporate headquarters in north central Alabama. Riverchase Center is well-located in one of the tightest office markets in the Southeast with a 10-year historical average vacancy rate of 9%. The portfolio is currently 88% occupied by highly recognizable tenants such as Progressive, Walgreens, Frito-Lay, and BioHorizons.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
