Boston, MA - July 27, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided $25,765,000 in non-recourse, first mortgage loan financing on 75 Sylvan St., a three-building, 271,580 sq ft complex in Danvers, MA. The property, a former manufacturing site, was acquired by Tea Light LLC, an affiliate of The Goggin Company of Portland, Maine.
The NewStar loan provides acquisition financing and additional capital for future interest and operating carry, capital improvements, and leasing costs. Peter Goedecke and Jeff Charneski of Goedecke & Co., LLC acted as exclusive financial advisor to the borrower. Goedecke & Co., a Boston-based mortgage banking firm active throughout the Northeast, will service the loan on behalf of NewStar.
"This was our first experience dealing with NewStar. We obtained a comprehensive loan structure that provided acquisition financing, as well as funds for property and tenant improvements. They delivered on their proposal within tight time constraints and demonstrated flexibility to work with us on our business plan from origination to closing. We couldn't be more pleased with our choice of NewStar to finance this project," said Ann Goggin, President of The Goggin Company, after closing.
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 was purchased from Applied Materials and is currently vacant. It will be renovated and marketed to office and flex space users. The Goggin Company will provide property management services to the property.
NewStar's deal team for the transaction included Tristan Pierce and Zibby Shiver.
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