Brad Domenico of Progress Capital Advisors arranged a $13.5 million permanent loan with two years interest-only for Maddd Equities secured by their building at 765 Broad Street. Originally built in 1960 as part of the Prudential Insurance Corporate Site, the 7-story building totals 214,172 SF with basement and ground level retail. Wells Fargo Bank currently leases a portion of the basement for offices/storage and 10,258 square feet of street level retail.
“Newark is hot right now!” remarked Domenico. “From renovation of historic architecture to the re-positioning of industrial factories into Class A offices and luxury residences, Newark seems to finally be moving beyond the ironbound section and investors are taking notice with multiple deals in the works.”
In March of 2017, the Newark Public Schools (NPS) announced their decision to relocate their headquarters from 2 Cedar Street to 765 Broad Street. With their lease expiring on July 31, 2017, the district sought to reduce expenditures, create a more flexible work space and establish a public center for family support and community engagement including science and computer labs.
NPS will be occupying 3 full floors and a portion of the ground level retail to accommodate their new community outreach center. Under this new agreement, NPS will save the community $2.3 Million annually. NPS will move to their new offices in the Fourth Quarter 2017 once renovations are completed in the new space.
Domenico arranged financing with Lakeland Bank, negotiating a permanent loan with a two-year interest-only period during which capital improvements will be made to the entire building, including fit-out for NPS and future tenants for the remaining vacancy. Given the value-add feature of the property, Domenico was able to negotiate a very favorable exit fee during the I/O period to allow the Borrower maximum flexibility. After the 24-month I/O term, the Borrower is eligible to convert to a permanent loan with no additional documentation or fees.