GE Real Estate provides $960m mortgage loan to iStar Financial.GE Real Estate's New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of regional office announced the completion of $960 million interest-only first mortgage financing with iStar Financial, Inc., secured by 34 single-tenant office, R&D and industrial properties located in 12 states. The portfolio of properties totals nearly 12 million square feet and is currently 99.6% occupied with an average lease term of 9.2 years, iStar will use the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of the three-year floating rate, cross-collateralized and cross-defaulted loan to retire existing debt obligations. John Fowler John Fowler may refer to:
JANET - Joint Academic NETwork Krolman and Greg LaBine of Holliday Fenoglio Fowler, LP brokered the transaction. "We have arranged many successful financings with GE Real Estate over the past several years," said Fowler, executive managing director in HFF's New York office. "No matter how big or complex the transaction, we can count on GE to deliver for our customer. In my opinion, there is no other single lender who could have made this deal happen in today's credit market." Jay Sugarman, chairman and chief executive officer of iStar, commented, "We were looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. a financing partner for this important transaction who we could rely on for timely and dependable execution. With the financial flexibility GE Real Estate was able to provide, we were able to close the transaction in less than 45 days, helping to better position iStar longer-term and enabling us to begin taking advantage of the new, more attractive lending environment." This financing for iStar represents the largest debt deal of 2008 for GE Real Estate. It is also the largest loan originated by the company in the past several years. Funding of approximately $810 million occurred at the initial closing of the financing. The balance of the funds is expected to be provided before the end of the second quarter of 2008, subject to the finalization Writing the table of contents (TOC) on a recordable CD or DVD disc. The finalization process ensures that the disc can be played back on most CD and DVD players. See disc-at-once. of additional loan documentation. The three-year financing is pre-payable in 20 months. "While sizeable, this is a relatively conservative transaction, well-margined and secured by a geographically-diverse portfolio of single-tenant properties. Almost half the tenants are rated investment grade," said Alec Burger, president of GE Real Estate's North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Lending division. "We've known the management of iStar for several years and are confident they will use this financing to build a strong platform for the future. We see this as the first of many deals together." iStar Financial Inc. is a leading publicly traded finance company focused on the commercial real estate industry. The Company primarily provides custom-tailored investment capital to high-end private and corporate owners of real estate. The Company, which is taxed as a real estate investment trust, seeks to deliver strong dividends and superior risk-adjusted returns Risk-Adjusted Return A measure of how much risk a fund or portfolio takes on to earn its returns, usually expressed as a number or a rating. Notes: This is often represented by the Sharpe Ratio. The more return per unit of risk, the better. on equity to shareholders by providing innovative and value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. financing solutions to its customers. |
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