Without disclosing the interest rate, he says the spread is priced to a three-year treasury. The loan has a three-year term with two, one-year extension options, and it will be managed in house by GE's Philadelphia office.

The loan-to-value ratio, Cohen says, "is a little shy of 85%. The borrower has already added considerable value to the asset and there is upside with approximately 20,500 sf on the ground floor still available for lease. That and the location are why we liked this transaction so much."

Under the agreement, White Plains-based Carlyle will get the initial $11.45 million now. Criteria for obtaining the additional $2 million are based on lease-up of the remaining space and the need for tenant improvements and leasing commissions. The rate is the same for both components of the funding, Cohen notes, but delaying the $2 million saves Carlyle interest payments on that portion until it is provided.

"The earnout dollars give us the flexibility to grow without the negative arbitrage associated with a fixed-rate CMBS loan," says Abdi Mahamedi, Carlyle's president and CEO, in a statement. He credits Cohen and Ferraro with providing "a highly competitive financing vehicle that enabled us to lock in attractive fixed-rate money."

According to public records, Carlyle paid $3 million for the property. As Juniper Court, it is a significant contributor to the revitalization of the Chestnut Street retail corridor east of City Hall. When West Elm and Lucky Strike inked leases in 2005, GlobeSt.com reported that retail rental rates along that stretch of Chestnut were in a range between $30 per sf and $35 per sf, up 30% from the previous year and still rising, according to a retail broker who spoke on condition of anonymity.