Boston, MA - August 31, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided $14,000,000 in non-recourse, first mortgage loan financing on Westowne Center, a 178,891 sq ft community center anchored by Gordmans, Michaels Stores and Office Depot, in West Des Moines, IA. The property was acquired by RPD Catalyst, a multifaceted real estate firm that specializes in acquiring undervalued commercial properties.
The NewStar loan provides acquisition financing and provided additional capital for future interest carry and re-leasing costs associated with the relocation of one of the anchors. David Aaronson of Live Oak Capital acted as exclusive financial advisor to the borrower and will service the loan on behalf of NewStar. According to Mr. Aaronson, "NewStar Financial's Commercial Real Estate group fills a great niche in the debt capital markets. They focus on the real estate fundamentals to make well structured loans to support value-added real estate investors."
The shopping center is 98.6% leased and the anchor tenants have generated strong sales. However, as one of the anchors has vacated their space and moved to a larger store format within the same trade area, RPD sought a lender who would feel comfortable with near term rollover risk and who would size a loan to fund the additional capital necessary to market and re-lease the vacant anchor space.
The facility was structured with a three-year term and two one-year extension options to allow ample time for RPD to market the vacant space to new tenants. NewStar provided flexible prepayment options to allow RPD the ability to refinance 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