Boston, MA - August 15, 2005 - NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided $6,950,000 in non-recourse, first mortgage loan financing on Ashford on the Bayou, a 128,405 sq ft office building in Houston, TX. The property was acquired by RPD Catalyst, a multifaceted real estate firm that specializes in acquiring undervalued commercial properties.
The NewStar loan provided acquisition financing and additional capital for future interest carry and costs of marketing and re-tenanting the property. David Aaronson of Live Oak Capital acted as exclusive financial advisor to the borrower and will service the loan on behalf of NewStar.
Since the office building is 44% leased and one of the major tenants indicated that they would not renew at the end of their primary term, 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 space. According to Scott Dew of RPD Catalyst, "It is unusual to find a lender who understands commercial real estate at the operating and leasing level. Dan Adkinson and Tristan Pierce of NewStar Financial are great financial partners for RPD."
The facility was structured with a three-year term and two one-year extension options to allow ample time for RPD to market the available 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 this 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