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BETHPAGE, NY-Robert Plan Corp. has secured first mortgage financing in a sale-leaseback transaction on a two-building property here. The 240,000 sf of class B office space is situated on over 17 acres.
The building is currently 100% occupied by the auto and property insurance company. The main two-story building is approximately 200,000 sf and houses the operations of the firm along with a cafeteria. The building houses approximately 450 employees. The second building is a one-story structure that is approximately 40,000 sf and is used primarily for document storage and retrieval. The property, completed in 1963, was originally built for Grumman with heavy floor loads. The building is serviced by loading bays and has an IT area with a raised floor and a separate fire system.
The property received $20 million at a 6.77% interest rate. The loan has a 10-year term of which five years is interest-only, then five years at a 30-year amortization schedule utilizing CharterMac's proprietary lending program, CharterMac Direct. The loan closed less than 10 days from application.
CharterMac Mortgage Capital the financing. "Over the past year, Long Island's economy has been fueled by growth in almost every industry, particularly the professional business services, healthcare and hospitality industries," notes George Haase, vice president of CharterMac Mortgage's New York City office. "The strong economy coupled with the low unemployment rate, are both positive indicators of future real estate demand for the area." He adds that the office market is healthy with an increased demand for space causing an upward trend in rental rates. The market is expected to maintain momentum throughout 2006, and developers are anticipating strong future demand, Haase expects.
In another financing, 1800 Walt Whitman, a 49,000-sf, multi-tenanted office property in Melville received mortgage financing for $7 million with a 6.24% interest rate. The one-story building constructed in 1988, is 100% occupied by seven tenants. CharterMac completed this deal as well.
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