George Smith Partners: Secures $18.9 million for the refinance of a 200,000 square-foot office building

Contact:
Corynne Randel/ Jenn Quader
Brower, Miller & Cole
(949) 955-7940
[email protected]

Middleton, Wisconsin, (November 1, 2013) – Commercial real estate investment banking firm George Smith Partners has successfully arranged $18.9 million in financing on behalf of its client, Pheasant West LLC., for the refinance of its 200,000 square-foot office building, which is currently leased by the University of Wisconsin Medical Foundation offices, according to George Smith Partners’ Vice President Steve Stein.
The property, a four story office building featuring 160,000 square feet of office space and 40,000 square feet of storage space is situated on a 10-acre lot at 7974 UW Health Court in the city of Middleton, Wisconsin.

According to Stein, the property was built in 2007 and has been leased by the University of Wisconsin Medical Foundation ever since.
“This was a highly attractive refinance loan opportunity for lenders, based on the property’s tenant, which is long-term, stable and has strong financial backing through its affiliation with the University of Wisconsin,” Stein explained.
The medical foundation offices are the sole tenant of the property, according to Stein, who noted that this is an appealing attribute to lenders.

“A long-standing single-tenant provides steady income for a property owner through the life of a loan. As a result, lenders feel more secure with regard to loan repayment,” said Stein.

One challenge George Smith Partners faced when arranging the refinancing of this property was the borrowing company’s structure, Stein noted. Rather than a traditional single-ownership entity, the borrower, Pheasant West LLC, is instead structured as a 74 member LLP.
“With this ownership structure, no single owner in the LLP holds a substantial interest in the ownership entity,” explained Stein. “This structure can be a concern for potential lenders. To remedy this, we drew upon our extensive network of financiers to identify a lender who was familiar with this ownership structure, and had lent to companies with this structure in the past.”

The loan provider, a Florida-based lender with a national single tenant net-lease platform, provided Pheasant West LLC. with an $18.9 million, 10-year loan, with an 8-year fixed rate of 4.65 percent, and an amortization of 20 years.

About George Smith Partners
Now celebrating its 20th year in business, George Smith Partners is a leading national real estate investment banking firm that specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. They have arranged over $10 billion of financing in the last 10 years. Additional information about George Smith Partners is available at, www.GSPartners.com .