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Category ArchiveMetLife

ACORE Lends $97M for JV Purchase of NJ Corporate Center

ACORE Capital provided $97 million to a joint venture of Rubenstein Partners and Vision Real Estate Partners (VREP) to facilitate the acquisition and capitalization of the Morris Corporate Center East & West in Parsippany, N.J., Commercial Observer can exclusively report.

Terms of the financing weren’t disclosed. The loan went towards the acquisition of one of the adjoined office buildings as well as to fund capital improvements aimed at adding amenities and attracting and leasing future tenants at the location.

The financing was arranged by Newmark Knight Frank’s Jordan Roeschlaub and Dustin Stolly, vice chairmen and co-heads of the firm’s debt and structured finance division, along with Managing Director Nick Scribani, sources told CO. NKF declined to comment on the transaction.

morriscorpcenter credit nkf 2 ACORE Lends $97M for JV Purchase of NJ Corporate Center
Entrance to Morris Corporate Center IV. Courtesy: Newmark Knight Frank

“Morris Corporate IV is the newest and highest quality asset within Morris Corporate Center. The superiority of the property, coupled with Rubenstein and Vision’s track record with office repositioning strategies, made this a great lending opportunity for ACORE,” ACORE Managing Director Jason Hernandez told CO. “ We are confident that we have best-in-class local sponsorship and a thoughtful, well-capitalized business plan to make the property the premier option for tenants (both large and small) in the market.”

NKF—out of it’s New Jersey office—also represented Intercontinental Real Estate Corporation and Ivy Realty in the sale of the property, which is also referred to as “Morris Corporate Center IV phase two.” Intercontinental and Ivy first purchased the building from MetLife in 2015, Globe Street reported in January.

Rubenstein and Vision purchased the other building in the assemblage—called “Morris Corporate Center IV phase one”—from SJP Properties, which is the original developer of the buildings, and Northwestern Mutual earlier this year. Cushman & Wakefield brokered the deal for the sellers and announced the transaction on February 28.

Built in 2000, according to the campus’ website, the two four-story office buildings are a combined 702,707 square feet and are situated at 389 & 399 Interpace Parkway within the Morris Corporate Center campus. The buildings are connected by a large, glass atrium lobby. “Morris Corporate Center IV phase one” is currently 71 percent occupied by four tenants, including U.K.-based Reckitt Benckiser and New Jersey-based management services company Skanska USA Building, Inc., according to information from C&W.

A spokeswoman for Rubenstein Partners did not immediately return a request for comment. Vision Real Estate Partners declined to comment on the deal.

Source: commercial

MetLife Lends $277M on Boston’s Keystone Building

MetLife Investment Management has provided TH Real Estate with a $277 million loan backed by the Keystone Building, located at 99 High Street in Boston’s financial district, Metlife announced on Monday.

The 12-year loan closed on February 22.

“The purpose of the financing was to increase liquidity and optimize leveraged returns,” Taylor Johnson, a senior associate at TH Real Estate, told Commercial Observer in an email statement. “Locking the rate in late December 2017 resulted in an excellent execution, which TH Real Estate will benefit from for the next decade.”

This marks the first round of debt financing TH Real Estate has secured for the property since the firm acquired it in 2005, according to a source familiar with the property. It wasn’t immediately clear how TH financed its purchase of the building and representatives for the firm did not immediately return an inquiry

The 32-story, roughly 730,000-square-foot office high rise is situated at the corner of Congress Street between High and Purchase Streets.

TH Real Estate currently has 13 properties in the Boston metro area, including 99 High Street and 10 other office buildings.

After almost 15 years of development delays, the company and its two development partners—Meredith Management and Gerding Edlen—officially broke ground on a planned five-building, roughly 1.1 million-square-foot mixed-use project called Fenway Center in January. It’s located next door to Fenway Park at  771-775 Beacon Street in Boston’s Kenmore Square area.

The project is one of Boston’s most anticipated as Meredith President John Rosenthal has been trying to develop the site for nearly 20 years, Curbed Boston reported in December. When completed it will have around 650 total residential units, 160,000 square feet of office space, 50,000 square feet reserved for retail, 1,290 parking spaces, a community space and a daycare center, according to Curbed.

Source: commercial

WeWork, Fidelis Sublease 64K SF From MetLife at LIC’s Brewster Building

Insurance giant MetLife continues to sublease out its significant office footprint at the Brewster Building in Long Island City, with health insurance provider Fidelis Care taking more than 21,000 square feet right below where coworking firm WeWork is slated to open a new 43,000-square-foot location, Commercial Observer has learned.

Fidelis, also known as the New York State Catholic Health Plan, agreed last month to take the entire 21,463-square-foot 11th floor at the 13-story, 700,000-square-foot office building at 27-01 Queens Plaza North, sources told CO. WeWork also signed a 42,926-square-foot sublease last month for the entire 12th and 13th floors at the property between 27th and 28th Streets in the western Queens neighborhood. The Queens Chronicle first reported the news of WeWork’s new LIC location.

Asking rent and length of lease in the deals were not provided, though MetLife’s direct lease at the Brause Realty-owned, former automobile assembly plant-turned-office building is due to expire in 2023.

MetLife signed a 20-plus-year lease for the entire property in 2001 as part of a much-hyped, heavily-incentivized move of its Manhattan operations across the East River to Long Island City. But that move that was largely abandoned five years later, when the insurer decided to relocate most its employees back to 1095 Avenue of the Americas, also known as 3 Bryant Park. (MetLife has since consolidated its New York City operations at 200 Park Avenue, the iconic former Pan Am Building that now bears the MetLife name on its facade.)

The insurance company has subsequently looked to sublease its considerable space at the Brewster Building to subtenants like airline JetBlue, which keeps its corporate headquarters at the LIC property, advertising and public relations firm Publicis Groupe, the Long Island City Partnership and Schweiger Dermatology Group—which recently agreed to take the entire 10th floor at 27-01 Queens Plaza North, as CO first reported last month.

Representatives for WeWork declined to comment on the transaction, while those for Brause Realty did not return requests for comment. Representatives for Cushman & Wakefield, which handles subleasing at the Brewster Building on behalf of MetLife, and Fidelis did not provide comment on the matter.

WeWork is slated to open its new location at the Brewster Building in February, the Queens Chronicle reported earlier this month. The space is expected to hold more than 600 people and will be the coworking giant’s second location in Queens, following its 60,000-square-foot shared office space in 3537 36th Street in Astoria.

Fidelis, meanwhile, acquired 95-25 Queens Boulevard—the 11-story Rego Park, Queens office building that houses its headquarters—from landlord LeFrak for just under $140 million in March, The Real Deal reported earlier this year.

Source: commercial

Schweiger Dermatology Group Leaving Midtown for Much Larger Digs in LIC

Source: commercial

Stuart Saft: Why the Brooklyn Kid is Busy Breaking up Buildings

Source: commercial