Boston, MA September 16, 2006 NewStar Financial, Inc. (“NewStar”), a Boston-based commercial finance company, announces that it has provided $10,050,000 in non-recourse, first mortgage loan financing on Westchase I & II, a 142,555 square foot, two-building office complex in Houston, Texas. The property was acquired by RPD Catalyst, LLC, a real estate firm that specializes in acquiring commercial properties that have a “value-add” component.
The NewStar loan provided acquisition financing and additional capital for future interest carry, capital improvements, and the costs of leasing 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.
RPD sought a lender who could appropriately size a loan to acquire and fund the additional capital necessary to market and lease the property to stabilization. “This is our fourth loan with NewStar and they have continued to live up to their reputation of closing on time and on terms,” said Scott Dew of RPD Catalyst.
The facility was structured with a three-year term and two one-year extension options to allow sufficient time for RPD to market the available space to new tenants. NewStar provided flexible prepayment options to allow RPD the ability to refinance or sell the property upon stabilization.
NewStar’s deal team for this transaction included Tristan Pierce, Mary Baccash and Don Davis.
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