Cronheim Mortgage Finances Suburban NJ Office for $8,000,000
Janet Proscia and David Turley arranged an $8 million mortgage for a Northern New Jersey office transaction. The 120,000 sf Class “B+” Office Building had an existing mortgage that was maturing. The client wanted to do a modest cash out, which brought the loan request to less than 50% LTV.
At the time of marketing this transaction, the Property was 95% leased but was going to have virtually all leases roll during the loan term. The lending community’s view of suburban office has been cautious and every potential investment is put through its paces. This deal was no exception. Proscia commented, “When we were able to make a case to the lender that this financing was really a recovery of equity that had been invested in significant capital improvements to the building to continue its superior position in the market as a best in class asset as well as show that it’s level of occupancy was outperforming many of its competitors, we had several very aggressive offers.”
Turley noted, “We went to market and sourced many options for consideration by our Client. Ultimately, the client opted for a 15/25 which priced at 159 bps over the 11.9 year average life Treasury.”
The loan was ultimately done with a life insurance company for whom Cronheim is a correspondent. Mrs. Proscia went on to say, “Having the correspondent system is a real asset to our clients. We are with the Borrower throughout the life of the loan if something is needed and we can get in front of the lenders in a way that others cannot. These relationships are a core part of our business.”