Galbreath obtains $180M for Oakland Federal Building.
The deal marks the first instance in which the lender, the Federal Financing Bank (FFB), has participated in a refinancing during construction. Under terms of the transaction, the loan will be converted to a long-term mortgage once the building is completed.
The building will be fully occupied by various federal government agencies, including the Internal Revenue Service, the Department of Veterans Affairs, the U.S. Attorney, the National Labor Relations Board, the Department of Energy, the Department of Labor and the General Services Administration.
Galbreath said the deal was complicated by federal statutes, which prohibit the FFB, an agency of the U.S. Treasury, from making loans directly to a developer of the Generall Services Administration. As a result, a central feature of the transaction was the creation of a trusteeship which received by assignment the rental stream from the GSA lease as collateral for the loan.
The innovative structure was negotiated by Galbreth's New York office, which is headed by Peter Ricker.
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|Title Annotation:||refinancing of construction loan for New York, New York's largest office building|
|Publication:||Real Estate Weekly|
|Date:||Mar 3, 1993|
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