KS Partners, LLC, one of the largest commercial office landlords in Greater Boston, in a joint venture partnership with Apollo Real Estate Advisors has secured a $71 million loan from GE Real Estate. The loan, an onbook 3-year fixed-rate loan under GE's flexible fixed rate loan program, will be used to refinance an eight building portfolio totaling approximately 542,000 s/f. The funding includes $7 million of future financing for tenant improvements and building upgrades.
Financing was arranged by Mike Marcone, principal of Marcone Capital, Inc. "The fundamentals in the suburban Boston office sector are very strong which made us confident that despite the current credit market turmoil and tightening we would be able to secure this financing," said Kambiz Shahbazi, president of KS Partners, LLC.
The portfolio includes:
115 & 117 Flanders Rd., Westborough
3 Riverside Dr., Andover
225 Friend St., Boston
2200 West Park Dr., Westborough
19 & 21 Alpha Rd., Chelmsford
165 Lexington St., Billerica
Marcone said, "The lender was able to provide a very unique loan structure. They provided a very competitive short term fixed rate loan combined with release clauses and prepayment options that gives the borrower a great deal of flexibility."
David Cohen, regional director, northeast for GE's North American Lending Group said, "This transaction enables us to execute on a value-add opportunity and increase our presence in the rapidly improving Boston market. This sponsor has the local expertise, a solid track record and the right strategy to add considerable value to assets in this market. We look forward to doing more deals with this type of profile in the near future."