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JERICHO, NY-The We're Group, a private developer and owner of office buildings with holdings of approximately 3.5 million sf, secures approximately $201 million in refinancing on a number of properties on Long Island. The loans include the $95-million refinancing of the 1.1-million-sf Lake Success Quadrangle with Metropolitan Life Insurance. LSQ is the location of Canon's US headquarters.
M. Robert Goldman & Co. Inc., also based here, arranged all of the financing transactions. MRG says the reason for the refinancing was that LSQ's existing loan had an onerous prepayment provision and had to be structured as an additional tranche of debt above an existing balance.
A $30-million loan was placed through MRG's correspondent relationship with Aegon USA Realty Advisors on behalf of Monumental Life Insurance Co. covering One Huntington Quadrangle. The property comprises 365,322 sf in three wings and is part of the one-million-sf Huntington Quadrangle complex developed by We're Group in the 1970's. The 364,472-sf Two Huntington Quadrangle was financed through MRG's correspondent relationship with AIG Global Real Estate Investment Group on behalf of the Variable Annuity Life Insurance Co. The two sites were under going a transition in tenancy and were in the middle of extensive capital improvement programs partially caused by the relocation of Henry Schein Inc. to another We're property, according to MRG.
A $25-million loan was placed with Guardian Life Insurance Co. of America on 300 Jericho Quadrangle which comprises 310,633 sf. The site, although leased by Cablevision, was never occupied by them and only partially subtenanted at closing.
MRG also secured $21 million through its correspondent relationship with Genworth Financial on 80 Baylis Rd., Melville. The building was expanded to 186,732 sf as part of a complete renovation for the relocating Henry Schein. The company uses the property as part of its headquarters complex, which also includes the adjacent 135 Duryea Rd. At 80 Baylis, an 18-month forward commitment was secured in 2004 to accommodate a 2005 occupancy by Henry Schein and had to be structured around various tenant purchase options.
"Each of the assignments had specific challenges that needed to be overcome," says Jonathan Goldman, executive vice president MRG. "By utilizing general account portfolio lenders we were able to fulfill the firm's needs without resorting to cumbersome structures which are all too commonplace amongst securitized loans." MRG is a privately owned mortgage banker representing 13 lenders with a servicing portfolio of over $1.3 billion.
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