PROGRESS CAPITAL | Piscataway, NJ – $4,500,000
14239
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Piscataway, NJ – $4,500,000

Category
Office
About This Project

$4.5MM – Limited Recourse Office Building

Progress Capital Advisors arranged a $4,500,000 permanent mortgage on a 200,000 SF Class A office building in Piscataway, NJ.
 
Challenge: The major tenant is Paychex, occupying 67,000 SF. Paychex plans to vacant the building upon lease expiration. The owner requested a creative credit facility to allow for funds to make overall building improvements and meet tenant fit out needs.
 
Solution: Kathy Anderson negotiated a $4.5 Million permanent mortgage on a 25 year amortization with a 12 year term. The first two years are interest only at prime plus 0.5%, so the client can draw down for required tenant fit out as needed thereby minimizing interest cost.
 
After two years, the loan will convert to a fixed rate loan at the 5 year FHLB + 225 bps with a floor at 3.75%. The loan is 50% limited recourse. The prepayment penalty was also attractively structured with a $15,000 cancellation fee during the interest only period and 3-3-2-1-0 for the next 5 years; with the added bonus of a 50% reduced prepay if the property is sold to a third party purchaser.
 
Progress Capital Advisors loan programs include Fixed Rate Loans, Construction and Specialty Financing as well as Directly Funded Bridge Loans. With over $40 Billion in closed loans and $100 Million in bridge and direct lending, we will get you to the closing table … plain and simple.