Boston, MA - September 13, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announced that it has provided $14,195,000 in non-recourse, first mortgage loan financing on The Boulders, a 103-unit apartment community in Brockton, MA, in connection with a planned condominium conversion. The property was acquired by BH Boulders Limited Partnership, a privately held real estate investment and development firm focused on multi-family real estate. Goedecke & Co. acted as exclusive financial advisor to the borrower and will service the loan on behalf of NewStar.
According to Bob Clifford of Goedecke, "This deal is a perfect example of the value NewStar brings to the market. They had the capital, the in-house expertise and flexibility to make this deal work."
The NewStar loan provided acquisition financing and additional capital for future interest carry and renovation costs associated with the conversion of the property into condominiums. The loan was structured with a three-year term and two one-year extension options to allow ample time for the completion of the project. NewStar also provided a flexible, low-cost prepayment option in the event the owner decides to maintain the property as a rental.
NewStar's deal team for this transaction Tristan Pierce, Gabriel Pozo 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