real estate

Cronheim Secures $17.8M for Suburban NJ Office Properties

Janet Proscia and David Turley, of Cronheim Mortgage, arranged a total of $17.8 million in two Northern New Jersey office transactions.  The first was a $7-million acquisition loan for a Class A, 63,830-square-foot building in Chatham Borough, followed by a $10.8-million refinance for a 137,304 square foot property located in Secaucus.

The Chatham property was financed with a life company for 15-years on a 25-year amortization schedule with a rate locked for the entire term at 3.9 percent. The building, located just off Route 24, was 100 percent leased at the time of acquisition and financing.  Proscia commented, “Even at a 50 percent LTV request, some life company lenders were hesitant to quote this deal because of considerable near term roll in the leases.  However, we were successful in demonstrating the strong market, excellent basis of this acquisition and long-term hold philosophy of the new owner.  This allowed us to create a winning deal that satisfied our client’s requirements.”

Located in Harmon Cove, the Secaucus building had maturing CMBS debt and this client had some very specific goals – no CMBS loans, close on the first date in the open prepay period, minimize escrow collections associated with a major tenant lease expiration during the loan term.  Cronheim was able to deliver a 10-year life company deal with a 25-year amortization on a totally non-recourse basis.  It locked rate at 3.8 percent and created a “very palatable structure” to address the major tenant lease expiration.  With all parties working diligently, a closing precisely on the date required occurred.

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