The 10-year loan, provided by a Silverpeak Real Estate Finance, closed in a short 19-day timeframe, features a fixed-rate of 4.77%, and interest-only payments for the first year. This transaction was negotiated by Meridian Capital Group Managing Director, Brian Flax, and Associate, Corey Schwartz, who are both based in the Company’s New York City headquarters.
Built in 2004, the six-story, 88,778 square foot, Class A office property is located at 201 North Harrison Street in Davenport and has been recognized as the “Most Appealing Office Building” in the area. Mississippi Plaza features a handsome granite façade and executive suites with Mississippi River views. Tenants of the building also benefit from quick access to Highway 67 and a location directly across the street from Figgie Art Museum. Mississippi Plaza is home to several major businesses including Lee Enterprises and RSM McGladrey and will continue to be a leading business address as the Quad Cities continue to grow.
“This transaction presented a significant challenge as the two largest tenants, who occupy a combined 70% of the building, have leases with the same expiration date which roll during the term of the loan,” said Mr. Schwartz. “Meridian worked closely with the talented team at Silverpeak on a creative structure that allows the sponsor to maintain sufficient ongoing cash flow while building up a reserve for tenant improvements and leasing commissions,” he added.
“Another highlight of this deal was the fact that we closed the loan with Silverpeak in a very short 19-day timeframe, allowing our client to immediately put the proceeds to work in another project,” added Mr. Flax.
Founded in 1991, Meridian Capital Group, LLC is one of the nation's largest commercial real estate finance and advisory firms. Meridian is headquartered in New York with offices in New Jersey, Maryland, Illinois, Florida and California. Working with a broad array of capital providers, Meridian arranges financing for transactions ranging from $1 million to more than $500 million for multifamily, co-op, office, retail, hotel, mixed-use, industrial, healthcare, student housing, self-storage and construction properties. www.meridiancapital.com