NewStar Financial Closes $12,000,000 Loan on Birchtree Aparments In Raleigh, NC
Dickinson, Logan, Todd, & Barber arrange floating rate multifamily property loan for Tiger Properties III
Boston, MA July 30, 2007 NewStar Financial, Inc. (NASDAQ: NEWS), a Boston-based specialty finance company, announces it has provided $12,000,000 in non-recourse, first mortgage loan financing on Birchtree Apartments. Birchtree Apartments is located in Raleigh, North Carolinia and includes a 22 building, 280 unit multifamily property. The property was acquired by Tiger Properties III, LLC, an affiliate of the owner of the adjacent multifamily property, Mallard Park. The NewStar loan provides capital for the acquisition as well as funding for a significant property renovation and upgrade program planned by Tiger Properties. The $3,000,000 program supplements almost $1,200,000 in property upgrades spent by the previous owner. It will include the construction of a new community building and fitness center, re-siding of all buildings and providing wireless internet access and washers and dryers in all units. The capital program is expected to be complete within 8 months.
Bill Barnard, a member of Tiger Properties III, stated, "The NewStar team designed and delivered a flexible loan structure that met our needs as owners. Their commitment to the deal and to us as a client was fantastic." Dan Adkinson, head of CRE for NewStar noted, "We are delighted to have the opportunity to work with the real estate professionals at Tiger and at Dickinson Logan Todd and Barber on this transaction." Dickinson Logan Todd & Barber, a Raleigh based mortgage banking firm active through the Carolinas and Virginia, acted as exclusive financial advisor to the borrower. NewStar's deal team for the transaction included Dan Adkinson, Don Davis, Carrie Pianin, and Mary Baccash.About NewStar Financial, Inc.:
NewStar Financial is a specialized commercial finance company focused principally 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' poisitions 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.
Anne G. Bork
Gaffney Bennett Public Relations