Boston, MA, April 29, 2010 - NewStar Financial, Inc. ("NewStar"), a Boston-based specialty finance company, announces that it has provided $4,950,000 in non-recourse, first mortgage loan financing on two Class A medical office buildings totaling 42,678 rentable sf, located at 100 and 300 Health Park, Drive, Garner, NC. The property is co-owned by Chartwell Healthpark, LLC and Property Holdings V, LLC. Chartwell Property Group ("CPG") acted as the sponsor on this transaction and acquired the property through a note purchase and foreclosure process. Medalist Capital acted as exclusive agent for the borrower.
The NewStar facility provides acquisition financing through an initial term loan and opportunity for additional borrowing through a delayed draw term loan to fund future tenant improvements, capital expenditures, and leasing costs. The floating rate facility is structured with a three year term and three one-year extension options. The deal also includes flexible prepayment options to facilitate the borrowers' ability to refinance or sell the property upon stabilization. NewStar's deal team for the transaction included Scott Poirier, Scott McIsaac, and Sean O'Grady.
"NewStar created a well conceived loan structure that gives us the flexibility to upgrade and reposition this well-located property. The NewStar team was highly professional and responsive throughout the deal," said Jack Dunn, Founder and Managing Partner of CPG.
"It was a pleasure working with the exceptional teams at CPG and Medalist and we look forward to partnering with them again in the future," responded Scott Poirier, Managing Director at NewStar.
Chartwell Property Group is a boutique investment banking firm providing advisory services and direct investment vehicles to the real estate industry. Jack Dunn and Michael Lewis led the deal for CPG.
Medalist Capital, headquartered in Charlotte, NC, is a mortgage banking firm active in the Southeast and was represented by Bat Barber and Roger Montague.
About NewStar Financial, Inc.:
NewStar Financial (Nasdaq:NEWS) is a specialized commercial finance company focused on meeting the complex financing needs of companies and private investors in the middle markets. The Company specializes in providing a range of senior secured debt financing options to mid-sized companies to fund working capital, growth strategies, acquisitions and recapitalizations, as well as, equipment purchases. NewStar originates loans and leases directly through teams of experienced, senior bankers and marketing officers organized around key industry and market segments. The Company targets hold positions of up to $30 million and will selectively underwrite or arrange larger transactions for syndication to other lenders. NewStar offers asset-based loans through its wholly-owned subsidiary, NewStar Business Credit. NewStar is headquartered in Boston MA and has regional offices in Darien CT, Chicago IL, Dallas TX, Los Angeles CA, Atlanta GA, and Houston TX. For more detailed information about our product capabilities, as well as, recent transaction and contact information, please visit our website at www.newstarfin.com