NewStar Financial Closes $8,775,000 Loan On Gresham Square Shopping Center In Oregon
CBRE Melody advises Falcon Real Estate
Boston, MA February 9, 2007 NewStar Financial Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided $8,775,000 in non-recourse, first mortgage loan financing on Gresham Square Shopping Center, a 125,000 square foot shopping and service center located in Gresham, Oregon. The property is owned by affiliates of Falcon Real Estate Investment Company, LP.The NewStar loan provides the sponsors with funds to refinance the existing debt on the property as well as additional capital for future leasing costs. John Nelson of CBRE Melody in San Francisco acted as exclusive financial advisor to the borrower. With respect to the loan closing, John Nelson said, "Jim Korinek and his colleagues at NewStar demonstrated tremendous flexibility and patience during a due diligence and closing process that had some unexpected delays."The shopping center is 86% leased to tenants including JR Furniture, Providence Health, Red Lobster and Tuesday Morning. Although its lease runs until 2011, anchor tenant Office Max vacated the property during the past year. "NewStar was willing to finance a property with a dark anchor and structured the loan with the best possible solution for Falcon and the property, allowing us to retain or replace the Office Max lease at our discretion," said Scott Sweeney, Principal of Falcon Real Estate. The facility was structured with a 3-year term and three one-year extension options. NewStar provided flexible prepayment options to allow the borrower the ability to refinance the property upon stabilization. NewStar's deal team for the transaction included Jim Korinek, Zibby Shiver, and Don Davis.
About NewStar Financial, Inc.:
NewStar Financial, Inc. was formed in June 2004 by a group of senior banking and capital market executives from leading financial institutions, including FleetBoston Financial Group, 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