W&M Properties makes commitment to Westchester/Fairfield.

Reaffirming its long-term commitment to independent ownership in the region and making an early return of equity to its limited partnership investors, W&M Properties has secured an aggregate of $26.5 million in permanent financing on two fully occupied Class A office buildings in Fairfield County, CT, and Westchester County, NY.

In transactions with CIGNA, W&M obtained $19 million of financing for the 250,000 square-foot MerrittView complex in Norwalk, CT, and $7.5 million of financing for the 120,000 square-foot 711 Westchester Avenue in White Plains, NY. Both mortgages are 10-year fixed-rate loans with 30-year amortizations and carry interest rates of less than 7 percent.

MerrittView and 711 Westchester Avenue both stood virtually empty until their acquisition from foreclosure by Malkin family-sponsored partnerships. W&M's in-house marketing, construction and management team then implemented its proven multi-tenanting and capital upgrade program.

"In today's overheated environment, we could easily have sold both properties for substantial profits, but our investors put their money with us for long-term income, and through these financings, we accomplished several objectives that enhance the long-term viability of their investments," said Anthony E. Malkin, president of W&M Properties.

"By refinancing the acquisition and bridge loans, we were able to take advantage of growth in market value, make a significant payment to our investors, secure permanent loans at a very favorable cost of funds, and maintain a low level of debt," malkin added. "Additionally, this demonstrates the continuing viability of our limited partnership ownership structures. In an era when real estate investment trusts garner all the headlines and dominate the attention of the real estate investing public, we are the 'man bites dog' story."

Entities led by the Malkin family and managed by W&M Properties own real estate in eight states, all through syndications funded by sales to accredited investors by Wien & Malkin Securities Corporation. Anthony Malkin's grandfather, Lawrence A. Wien, pioneered real estate limited partnerships beginning in 1934. In subsequent decades, he and Peter L. Malkin (Anthony Malkin's father) syndicated the ownership of numerous properties, including the Empire State Building.

"Those early syndications are the models of our current successful real estate syndication program," Malkin observed. "In the 1980's, fast-buck syndicators pushing fee-driven and ill-conceived tax shelters gave limited partnerships a bad name in the public consciousness. But syndication as a conservative investment approach to capital markets - combined with real estate operating savvy - still works."

A Malkin-led investment partnership acquired the MerrittView building from Bank of Nova Scotia in October of 1994. At the time, the then nine-year-old property had no identity and was struggling to maintain a poor 40 percent occupancy level, even though a much larger office facility nearby was virtually full.

Today, following an extensive upgrading and a vigorous marketing program that put Class A amenities within the reach of mid-size and smaller tenants, MerrittView is well-respected and well-known in the market as a "landmark" property, according to Malkin, "with its cityscape identification signage serving as a beacon to travelers on such major thoroughfares as the Merritt Parkway, the Super 7 Connector and Old Route 7/Main Avenue."

The building is now fully leased and occupied, with an international tenant roster that includes U.K.-based Reed Elsevier, one of the world's largest publishers; Nestle, the Netherlands-based food giant; Norwest Mortgage, a leading mortgage banking firm; Comdisco, an international computer services firm; ISL Marketing USA Inc., a sports and hospitality marketing firm; J.D. Edwards, a business software company; and Cellmark, the world's largest wood pulp and waste paper trading company.

An even more dramatic transformation was achieved at 711 Westchester Avenue, acquired by another Malkin-led partnership from Aetna Life less than two years ago as little more than an empty building.

"We were extremely enthusiastic about the location of this property along the 'Platinum Mile,' just east of downtown White Plains, directly off I-287 and a very short distance from I-684, the Hutchinson River and Merritt Parkways, and I-95," said Malkin. "In our vision, we saw a showplace for smaller tenants who wanted the prestige, amenities and convenience of a top-quality building with the right address. And that's what we created."

Following a complete refurbishment and upgrading, 711 Westchester is fully leased. Among its diverse array of service and industrial tenants are Key Bank, N.A., a major regional financial institution; The Guild Group, a full-service marketing and creative services firm; Pricellular Wireless Corporation, a cellular telephone service provider; Novarco, Ltd., a Swiss-based commodities trading firm; Avenor America Inc., the marketing subsidiary of a major Canadian newsprint manufacturer; and Henningson, Durham & Richardson, P.C., an architectural and engineering firm.