NewStar Financial Closes $11,275,000 Loan On Camel 19 And Parkwood Plaza Office Buildings In Phoenix
Churchill Mortgage of Arizona advises WJ Commercial Enterprises
Boston, MA December 13, 2006 NewStar Financial, Inc. ("NewStar"), a Boston-based commercial finance company, announces that it has provided $11,275,000 in non-recourse, first mortgage loan financing on Camel 19, two, Class B, office buildings totaling 86,816 sf, as well as Parkwood Plaza, a medical office building totaling 64,509 sf. All buildings are located in Phoenix, Arizona. The property is owned by a venture that is led by Will Jones of WJ Commercial Enterprises, a commercial real estate brokerage and investment management firm based in Solana Beach, California. George O'Connell of Churchill Mortgage of Arizona, a Phoenix-based mortgage banking firm active throughout the Southwest, acted as the exclusive financial advisor to the borrower and will service the loan on behalf of NewStar. The venture acquired the properties in 2005 and has recently completed a substantial leasing program including the additions of Imagine Schools and the American Institute of Medical-Dental Technology. The properties are currently 87% occupied. The NewStar loan provided proceeds to refinance the existing property financing and provide capital for completion of tenant installation, leasing commissions and capital improvements. George O'Connell noted that "NewStar was able to see the positive nature of the transaction even though it presently is in a state of considerable flux. Construction is taking place not only on the improvements themselves but also on the main road providing access to the property. A light rail system is being developed in Phoenix and surrounding cities and it happens to be coming right by the subject which has caused considerable traffic disturbance. NewStar was able to see the end result which is continued leasing and full buildings within the relatively near future."The facility was structured with a two-year term and two one-year extension options to allow sufficient time for WJ Commercial to market the available space to new tenants. NewStar provided flexible prepayment options to allow WJ Commercial the ability to refinance or sell the property upon stabilization.NewStar's deal team for this transaction included Dan Adkinson, 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. NewStar is focused exclusively on providing customized financing solutions to mid-sized borrowers in three dedicated lending groups: Middle Market Corporate, Commercial Real Estate, and Structured Products. For more information, please contact the appropriate individual below.
Gaffney Bennett Public Relations