NewStar Financial Closes $13,200,000 Loan on Melville, Long Island Office Building
Northmarq Capital arranges floating rate loan for Harvest Real Estate Services
Boston, MA, July 11, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces that it has provided $13,200,000 in non-recourse, first mortgage loan financing on 245 Old Country Road in Melville, New York. 245 Old Country Road is an 82,000 square-foot office building that is owned by Harvest Real Estate Services, a regional real estate development and investment firm. Harvest Real Estate Services worked with Ernie DesRochers, Managing Director of Northmarq Capital, who acted as exclusive financial advisor to Harvest and will service the loan on behalf of NewStar."NewStar had a great team working on this transaction." noted Mark Hamer, Founder of Harvest Real Estate Services. "They are easy to work with and they were able to provide Harvest and our partners with a loan that was well-suited to expand the office building to 120,000 square feet and fully renovate this asset." The NewStar loan provided financing for the renovation and expansion of the property with additional capital for interest and operating carry, tenant improvements and leasing costs. The building, which was recently vacated by Citicorp as part of its consolidation on Long Island, is approved for expansion of its upper floor by 50%. The loan facility was structured with a two-year term and two one-year extension options.Ernie DesRochers of Northmarq said, "NewStar was able to quickly understand what the borrower was looking for and provided a flexible capital structure to complete the planned renovations, expansion and lease-up of this property, which is in an excellent location on Long IslandNewStar's deal team for the transaction included Jim Korinek and Carolyn Pianin of the Darien, CT office.About NewStar Financial, Inc.:
NewStar Financial is a specialized commercial finance company focused exclusively on meeting the complex financing needs of customers in the middle market through our corporate, commercial real estate, and structured products groups. Our senior banking teams call directly on customers to provide advice and finance a range of strategic transactions that may require some combination of senior secured, second lien and mezzanine financing. NewStar typically works with customers with financing needs of up to $150 million and cash flow as low as $5 million. We target 'hold' positions of up to $35 million, but may also underwrite or arrange transactions up to $100 million for syndications to other lenders. We are headquartered in Boston MA, with regional offices in Darien CT, Chicago IL, San Francisco CA, San Diego CA, and Charleston SC. In December of 2006, NewStar completed an Initial Public Offering. The Company's shares trade on the NASDAQ under the ticker symbol, NEWS. Please visit our website at www.newstarfin.com
for more detailed transaction and contact information.
Robert K. Brown
Gaffney Bennett Public Relations
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