CBRE Arranges $41M Loan To Wrap Acquisition Of High-Quality Birmingham, AL, Office Buildings

November 21, 2014

Two of Birmingham’s large Class A office buildings in the 280/459 submarket have been sold.

BRE Debt & Structured Finance originated two loans totaling $41.19 million on behalf of PointOne Holdings of Hollywood, FL, to complete the acquisition of International Park and Blue Lake Center in Birmingham, AL. Starwood Mortgage Capital provided the non-recourse, commercial mortgage-backed securities (CMBS) loan at a fixed rate with a 10-year term. The properties span 377,921 square feet of Class A office space in one of Birmingham’s most sought-after submarkets, the 280/459 corridor, and were acquired for $51 million in partnership with ESJ Capital Partners.

CBRE Vice Chairman Charles Foschini and Vice President Jason Hochman sourced the loan for PointOne Holdings.

“We chose a lender who creatively worked with our client and provided a loan exceeding 80% of the purchase price with an attractive long-term rate,” said Mr. Hochman. “They worked through an expedited due diligence process and were ready to close on time.”

Added Mr. Foschini, “With this attractive debt service locked in, PointOne Holdings can use its expertise in operating multi-tenant office buildings to grow the property’s income and provide strong yields to its investors.”

“This acquisition represents a strategic addition to our holdings and we are excited to expand into Birmingham with such a prominent portfolio,” said David Garfinkle of PointOne Holdings. “The transaction would not have been possible without the help of the professionals at CBRE and Starwood Mortgage Capital.”

With a blended 90% occupancy including national, regional and local tenants, International Park and Blue Lake Center enjoy superior highway access between Birmingham’s business district and its affluent suburbs.

Foschini and Hochman collaborated with partners Christopher Apone and Christian Lee of the CBRE Capital Markets, South Florida Institutional Properties team. Jeff Ackemann and CJ Kelly of CBREs Debt & Structured Finance group in Atlanta assisted with the transaction. CBRE Atlanta’s Institutional Properties Sales team represented the seller in the transaction.