Newstar Financial Closes $12,025,000 Loan on Fort Worth Office Property
Holliday Fenoglio Fowler, L.P. advises N3 Capital
Boston, MA, July 17, 2007 - NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based commercial finance company, announces that it has provided $12,025,000 in first mortgage loan financing on Tindall Square, a 113,000 square-foot, five building office property located in Fort Worth, Texas.The Tindall Square property originally served as a storage and factory space for the Ellison Furniture Company in the early 1900s. Today, the five building Tindall Square property forms a small historic district on the east side of downtown Fort Worth. In the early 1990s, four of the five buildings were renovated to multi-tenant office space with immediate access to downtown Fort Worth. Tindall Square offers tenants a viable alternative to expensive downtown office space while still providing a prime CBD location.The property was acquired by an affiliate of N3 Capital, a Fort Worth based development and investment firm which will relocate its headquarters to the property. In addition to aggressively marketing the available space for lease, N3 plans on converting one building which is currently used for record storage into office space and leasing the property to stabilization.The NewStar loan provides acquisition financing and additional capital for future interest carry, capital improvements, and the costs of leasing the property. The facility was structured with a three year term and two one year extension options so as to allow sufficient time to market the available space to new tenants and complete the building conversion. NewStar provided a short term lock-out period with no subsequent prepayment penalty to allow N3 the ability to refinance the property upon stabilization. NewStar's deal team for this transaction included Tristan Pierce, Don Davis, Zibby Shiver, Erica Salkow, and Evan Turner. Kevin Mackenzie and Travis Anderson of Holliday Fenoglio Fowler's Dallas office acted as exclusive financial advisors to the borrower. HFF will service the loan on behalf of NewStar.
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