Boston, MA - May 26, 2006 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided $2,850,000 in non-recourse, first mortgage loan financing on 101 Trade Zone, a 90,000 sq ft flex-office park in Columbia, SC. The property is owned by KIRCO, a Troy Michigan based diversified real estate firm with over four decades of experience in land acquisition, planning, development, construction, disposition, renovation, as well as property and asset management
"The property is being reconfigured due to a pending condemnation by the South Carolina Department of Transportation," said Robert Kadoori of First Fidelity Mortgage Corporation, who arranged the loan. "NewStar replaced the existing loan and set aside additional proceeds to cover potential lease-turnover costs over the next few years. In short, they provided KIRCO with maximum flexibility while executing the transaction in a timely and efficient manner."
The office building is 81% leased, due to the pending condemnation. KIRCO sought a lender who would feel comfortable with the process and the near term rollover risk and would therefore fund additional capital to market and re-lease vacant space.
The facility was structured with a two-year term and two one-year extension options to allow ample time for KIRCO to complete the rebuilding subsequent to the taking and market the vacant space to new tenants. NewStar provided flexible prepayment options to allow KIRCO the ability to refinance the property upon stabilization.
KIRCO also has offices in Columbus, Ohio and Charlotte, North Carolina, which serve as an operating base for current properties in North Carolina, South Carolina and Florida. KIRCO is actively involved in office/medical office, industrial/distribution, retail and residential land
NewStar's deal team for the transaction included James Korinek, Carolyn Pianin, Ed Terry 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