Large Office Portfolio Gets $51M Recap

HUNTSVILLE, AL—Berkadia has secured a $51-million loan to refinance a 670,890-square-foot office/flex portfolio in Cummings Research Park in Huntsville, AL– the second-largest research park in the United States. The three-property portfolio consists of Perimeter Center (two mid-rise office buildings); Progress Center (five single-story office/flex buildings); and 110 Wynn (two single-story office/flex buildings).

According to a prepared release, the portfolio, which sits approximately six miles from downtown Huntsville, is 91% leased.

Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia Miami secured financing on behalf of the owner, Triangle Capital Group, a private real estate firm with over $1 billion of assets in 16 states.  The lender, Blue Vista Finance, provided a seven-year, fixed-rate loan, with 5 years interest only, and a 30-year amortization thereafter.

“The quality of the sponsor, combined with Huntsville’s strong aerospace, defense, and technology sector, made this a compelling opportunity for the lender,” said Foschini in a prepared release.

Located at 1500 and 1525 Perimeter Pkwy., Perimeter Center comprises two mid-rise buildings built in 1987 and 1989 totaling 234,146 square feet. The property is 87 percent occupied by 41 tenants. Located at 6767 Old Madison Pike NW, Progress Center consists of five buildings totaling 221,259 square feet, built in 1985, 1989 and 1992. The property is 86 percent occupied with 34 tenants. 110 Wynn, formerly known as the DRS Building, was built in 1967 and later renovated in 2003 and 2021. It consists of two buildings totaling 215,485 square feet, and is 100 percent occupied by one tenant.

Cummings Research Park is one of the leading science and technology parks internationally, with Fortune 500 companies, local and international tech companies, U.S. Space and defense agencies, start-ups and higher education institutions. It is home to nearly 300 companies, 26,000 employees and 13,500 students. Anchor tenants in the Park include Teledyne Brown Engineering, UAH, Lockheed Martin, Redstone Federal Credit Union, and Calhoun Community College. The property is located approximately 10 minutes from both downtown Huntsville and the Huntsville International Airport, and enjoys close proximity to both I-565 & I-72.

Known as “Rocket City,” Huntsville is on track to become Alabama’s largest city by 2024, and is home to the Marshall Space Flight Center, the United States Army’s Redstone Arsenal, as well as numerous new firms including Polaris Inc., Blue Origin LLC, Mazda / Toyota Manufacturing, and Aerojet Rocketdyne.