Boston, MA - June 08, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided $20,740,000 in non-recourse, first mortgage loan financing on 3900 Essex Lane, a 235,620 sq ft office building in Houston, TX. The property is co-owned by Aquinas Essex, LLC and 3900 Essex, LP. Live Oak Capital acted as exclusive agent for the borrower.
Aquinas Essex, LLC is a subsidiary of Aquinas Corporation, the parent company of Linbeck Group, LP. Houston-based Linbeck Group specializes in project planning, project management and the construction of complex and high quality projects throughout the nation. Aquinas Corporation executives Leo Linbeck III, Eugene Lee, Mark Worscheh and Bill Riegler led the acquisition of the property.
"NewStar created a thoughtful and aggressive loan structure that gives us the flexibility to upgrade and properly reposition this well-located property. I appreciated their professionalism and responsiveness during both the negotiations and the closing," said Mark Worscheh, president of Aquinas Essex, LLC.
The other co-owner, 3900 Essex, LP, is an affiliate of Fuller Realty Partners, LLC. Fuller will lease and manage the property on behalf of the ownership. 3900 Essex adds to Fuller's portfolio of Galleria-area assets. Fuller principals Steve Darnall, Paul Moreton and Stewart Smith were instrumental in the acquisition.
The office building is 100% leased by Baker Hughes and 42% subleased. However, Baker Hughes had previously decided to vacate their space upon expiration and move to another location. Aquinas Corporation sought a lender who would feel comfortable with the near term rollover and who would size a loan to fund the additional capital necessary to market and re-lease the vacant office space.
The NewStar loan provides acquisition financing and additional capital for future interest carry, capital expenditures and re-leasing costs associated with the termination of the Baker Hughes lease. The facility was structured with a three year term and two one-year extension options to allow ample time for the owners to market the property to new tenants. NewStar also provided flexible prepayment options to facilitate the borrowers' ability to refinance or sell the property upon stabilization.
NewStar's deal team for the transaction included Dan Adkinson, Tristan Pierce, and Joseph Turilli.
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