Windsor, CT According to Griffin Industrial Realty, Inc., two of its subsidiaries closed on the refinancing of a nonrecourse mortgage loan (the existing loan) with Webster Bank that was collateralized by 5 and 7 Waterside Crossing, two multi-story office buildings aggregating 161,000 s/f in Griffin Center.
Immediately prior to the refinancing, the existing loan had a balance of $5.9 million with a maturity date of October 2. The refinanced nonrecourse mortgage loan (the new loan) is for $4.4 million, has a five year term with principal payments based on a twenty-five year amortization schedule and is also collateralized by 5 and 7 Waterside Crossing. The new loan has a variable interest rate based on the one-month LIBOR rate plus 2.75%, but Griffin entered into an interest rate swap agreement with Webster that effectively fixes the interest rate on the new loan at 4.72% over the term of the new loan.
The existing loan had a variable interest rate that was effectively fixed at 3.86% through an interest rate swap agreement with Webster.
Griffin used cash on hand of $1 million and $500,000 that had been held in escrow by Webster to repay a portion of the existing loan in connection with the refinancing.