BRISTOL, PA−The new owners of a building on the Delaware here that went through hard times in 2009 have gotten a $9.6 million loan that includes “good news” money for leasing up the building long-term – to a tenant who was already in place.
Angelic Real Estate, based in New York City, arranged the loan on the Island View Crossing office building here, just outside of Philadelphia. Last month, the 180,000-square-foot office building sold for $12.5 million to a partnership of Red River Asset Management of New York and Arlington Group Real Estate of Conshohocken.
Also last month, Lenox – the fine china maker – signed a 12-year lease extension with the new partnership. Lenox recently emerged from bankruptcy and is in the midst of re-branding. The partnership will rename the property the “Lenox Building.”
Lenox, which makes ceramics and figurines, was recruited to the building in 2006, when Preferred Real Estate Group of Conshohocken redeveloped it from a former soap factory into an office building. The company consolidated its offices from other sites in Pennsylvania and New Jersey. In 2009, Lenox filed for bankruptcy and Preferred handed the property back to the U.S. Bank, which remains a part owner under the new arrangement.
Larry Doyle, who worked with Preferred at the time of the give-back, is now with Arlington Group. He said his group had one goal for the property all along: renegotiate with the government lender. Almost $25 million of debt had piled up at the time it went into receivership.
Doyle worked with a financing team led by Gabriel Silverstein, SIOR, and Louis D'Lando of Angelic.
Other current tenants at the property include supply chain manager Strategic Distribution Inc., and office supplies retailer Staples.
“The property was a bank-owned REO property, but stable, with further upside." said Silverstein. “Our borrower did a great job signing a 12- year new lease with Lenox, which has confirmed its long-term commitment to the building,” he said.
The owners plan to upgrade common areas and building amenities.
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