Boston, MA, October 29, 2004 - NewStar Financial, Inc. (“NewStar”), a Boston-based commercial finance company has funded, as sole lender, an $8,650,000 senior mortgage for the acquisition and lease-up of 455 Winding Brook Road, a newly constructed 86,000 square-foot office building in Glastonbury, Connecticut. The bridge loan was provided to Abbey Road Advisors, LLC of Westport, Connecticut, to acquire the property.
The NewStar loan provided non-recourse floating rate financing for 71% of the purchase price and included a future commitment for 100% of budgeted tenant improvement and leasing costs, as well as operating costs and debt service until breakeven leasing is achieved. The three-year loan provides flexible pre-payment options so that Abbey Road can assess its capital markets options as the property reaches greater stabilization.
“NewStar understood our client’s strategy, tailored an approach to meet their needs, and then delivered a solution within the necessary timeframe,” said Dan Adkinson, head of real estate for NewStar. “This transaction was a perfect fit: a quality asset in the Winding Brook property, a value-added borrower in Abbey Road Advisors, and NewStar’s expertise and flexibility.”
NewStar’s deal team for the transaction included Jim Korinek, Gregg Delany and Gabe Pozo.
Abbey Road Advisors completed its third acquisition with the Winding Brook transaction. HFF LP of Hartford, Connecticut represented Abbey Road in arranging the financing. CB Richard Ellis, Inc. has been selected by the new owners to continue the leasing of 455 Winding Brook.
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