To fund the buy, TCA obtained a $22.5-million fixed-rate acquisition loan, arranged by Philadelphia-based BlueStone Real Estate Capital. Kris Wood, BlueStone's managing director, secured the funding from JP Morgan. It has an 85% loan-to-cost ratio, which puts the price tag for the property at nearly $26.5 million, or just above $202 per sf.
Matthew McManus, chairman of BlueStone, tells GlobeSt.com the deal was initially difficult to finance, because "Vertex is a private company, and it had signed up for 100% occupancy for 10 years." However, following due dilligence and the company's 30-year history, both Trinity and JP Morgan became comfortable with the deal.
Without disclosing the value of the Vertex lease agreement, McManus says that market rents in the area range between $19.50 per sf and $24 per sf. "Even under a worst-case scenario, which is not anticipated, Trinity has a good record of leasing," he adds.
Douglas Joseph, investment specialist, and Andrew Spillard, office specialist for CB Richard Ellis, along with the CBRE Philadelphia regional investment property team of Robert Fahey, Michael Hines, Michael Blunt and Lizann McGowan, were sole brokers in the sales transaction.
The Cassford complex was completed in 2001. This is Trinity's second successfully completed transaction with BlueStone, and Olin Belsinger of TCA says, "we hope to continue to work with them on these types of sophisticated deals."
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