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$32M Loan Follows Park's Acquisition

CHERRY HILL, NJ-The funding is tied to Endurance Real Estate's all-cash deal for the 737,300-sf Cherry Hill Business Park.

By Eric Peterson | Updated on September 17, 2008

CHERRY HILL, NJ-Endurance Real Estate has picked up a loan for $31.9 million secured by its Cherry Hill Business Park here. The Bala Cynwyd, PA-based Endurance acquired the property at the end of June from First Industrial Realty Trust. It was an all-cash deal, but Endurance officials simultaneously revealed then that they would place debt on the portfolio post-closing. The sale price was not released, but industry sources put it in the $50-million range.

Donna Falzarano and James Gunning of CB Richard Ellis capital markets, debt and equity finance arranged the package through the Des Moines-based Principal Life Insurance Co. The non-recourse loan is made up of both floating-rate and fixed-rate components, according to Gunning. The floating rate loan amounts to $7.4 million with an interest 270 basis points over three-month Libor, while the fixed rate portion is $24.5 million at an interest rate of 5.92%. Terms are 10 years with a 30-year amortization on the fixed-rate component, and 65% LTV.

“In light of today’s capital market environment, we were pleased with the overall financing package that we received, and the flexibility that it provides as far as selling individual buildings,” Benjamin Cohen, president and co-founder of Endurance, tells GlobeSt.com. “It was a please to work with principal and CBRE every step of the way.”

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