NewStar Financial Closes $7,900,000 Loan on City Plaza Office Building In San Mateo, CA
Newmark Realty Capital, Inc. acted as the mortgage banker.
Boston, MA August 24, 2007 NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces it has provided $7,900,000 in non-recourse, first mortgage loan financing on City Plaza, a Class A, 62,690 square foot office building located in San Mateo, California. The borrower is an entity sponsored by an experienced local real estate investor in the San Mateo area. The NewStar loan provides both acquisition financing and additional capital for the re-tenanting of the property. The facility was structured with a 2-year term and three one-year extension options. NewStar provided flexible prepayment options to allow the borrower to refinance the property upon stabilization. Newmark Realty Capital, Inc. of San Francisco acted as the exclusive financial advisor to the borrower and will provide loan servicing for NewStar. The office building is currently 72% leased with significant roll in the near term expected, with leases for over half of the property's net rentable area scheduled to expire in the next three years. The borrower sought a lender who was experienced with near term rollover risk and who would structure a loan to fund the additional capital necessary to market and re-lease the vacant space. "NewStar was very responsive to the borrower's specific need for a loan structure that accommodated future leasing," said Eric Von Berg, Principal of Newmark.NewStar's deal team for the transaction included Jim Korinek, Don Davis, Andrea Goldman, and Mary Baccash. Newmark's team was led by Tom Dao in the San Francisco office.
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' 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.
Anne G. Bork
Gaffney Bennett Public Relations