Mellon Bank Center Scores $175M Financing

PHILADELPHIA- A pair of foreign banks has provided $175 million in first mortgage financing for the Mellon Bank Center, a 1.3-million-square-foot Downtown office tower here. Medalist Capital arranged the 10-year non-recourse paper, which carries a 5.66% fixed rate for the first seven years and three years of interest-only payments followed by a 30-year amortization.

Owner Newton, MA-based HRPT Properties Trust is using the financing to pay off debt under its revolving credit facility. The 54-story Mellon Bank Center, at 1754 Market St., was built in 1990. Major tenants other than Mellon include energy firm Sunoco and chemical company FMC Corp.

The deal, a large one in a tight financial atmosphere, got done largely because of HRPT’s reputation as an owner and the credit of the asset’s tenants, Richard Williams, a senior vice president at Charlotte-based Medalist, told GlobeSt.com. “The capital markets have improved a fair amount from a year ago, especially for public companies,” he said, but pointed out that the market is still volatile and financing deals take a long time to get done.