Medical BTS Gets $32M Development Loan

NEW BRUNSWICK, NJ–AST Development Corp., which is currently under construction of 101 French St. here, has received a $32 million permanent take-out loan for the project. Sonnenblick Goldman arranged the loan, with financing provided by New York-based CTL Capital LLC. It will be used to pay off a bank loan funding the building’s construction. Financial details of the loan have not been released, but Sonnenblick Goldman director Mark Ehlinger tells GlobeSt.com that the loan is a long-term deal.

101 French St. is a build-to-suit, 100% pre-leased to Robert Wood Johnson University Hospital. The 10-story, 126,0000-sf medical office, across Plum St. from the university’s main campus, is scheduled for completion in the third quarter of 2008.

“AST Development Corp.’s development expertise, combined with the tenant’s strong credit, was a significant inducement for several lenders to make attractive proposals to provide the permanent financing for this project,” Ehlinger says. “However, CTL Capital’s superior capabilities in structuring credit-tenant lease financing transactions enabled it to offer our client the most favorable terms.”