Boston, MA - August 24, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces it has provided $13,300,000 in non-recourse, first mortgage loan financing on 4707 East Baseline, a 138,110 sq ft office/flex building, formerly known as the "Action Performance Building", located in Phoenix, Arizona. The property was acquired by RBG Realty Advisors and Holualoa Arizona, Inc.
The NewStar loan provides acquisition financing and additional capital for future interest and operating carry, capital improvements, and leasing costs. Churchill Mortgage of Arizona acted as exclusive financial advisor to the borrower. Churchill Arizona, a Phoenix-based mortgage banking firm active throughout the Southwest, will service the loan on behalf of NewStar.
"NewStar showed great flexibility in structuring a loan with multiple exit strategies. Holualoa/RBG has the option of selling the property as condominiums, selling outright to a single user, or leasing as industrial, office or retail. Yet we were still able to deliver a non-recourse loan with very competitive terms," said Cindy Hammond, president of Churchill Arizona.
The facility was structured with a three-year term and two one-year extension options to allow ample time to market and lease the space to new tenants. NewStar provided flexible prepayment options to allow the borrower the ability to refinance the property upon stabilization. The property is currently vacant. It will be renovated and marketed to office and flex space users.
NewStar's deal team for the transaction included Dan Adkinson and Carolyn Pianin.
About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital markets executives from leading financial institutions, including FleetBoston Financial, Citigroup and JP Morgan Chase, and leading institutional investors including Capital Z Partners, JP Morgan Corsair Capital Partners and Och-Ziff Capital Management Group. NewStar is focused exclusively on providing customized financing solutions to mid-sized borrowers in three lending groups: Middle Market Corporate, Commercial Real Estate, and Structured Products. For more information, please contact the appropriate individual below.
Gaffney Bennett Public Relations