Gretchen S. Wilcox, president, and Al Raymond, principal, put the deal together for an unnamed borrower. Wilcox tells GlobeSt.com the borrower acquired the property in 2007 and was looking to replace a short-term funding vehicle used to reposition the asset with a permanent loan. Although she declines to name the borrower, Wilcox says he is one of the state's top developers and owners of commercial real estate in the city.
The loan, obtained from a regional bank that G.S. Wilcox originates and services loans for, has a five-year term, a 75% loan to value and an interest of 6.25% with a 25-year amortization. Both the rate and the LTV ratio are above what is typically quoted in the market.
"This was an absolutely fantastic financing because it was a 75% loan to value on an office building in Newark," Wilcox relates. "Given the strength of the borrower and the strength of our relationship with the bank, we were able to get everyone comfortable with the 75% loan. Typically, loans for office buildings are not more than 60% to 65%."
The interest rate was "very good" as well, Wilcox explains. "Some banks are in the mid-6s, and some life companies are in the mid-7s," she says. "This is definitely on the lower end of the spectrum, especially for office."The deal took about four months to complete. "This is a repeat client, which makes things easier," Wilcox says. Although Q10/G.S. Wilcox declined comment on the location of the building, but GlobeSt.com uncovered that it is 494 Broad St.
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