Meridian Capital Group, America’s most active dealmaker, arranged $11.5 million in acquisition financing for Wilson Plaza, an office property in Corpus Christi, TX, on behalf of The Tridium Group.
The five-year loan, provided by a balance sheet lender, features full-term interest-only payments and was negotiated by Meridian Senior Vice President, Jason Grimm, Managing Director, Noam Kaminetzky, and Senior Managing Director, Israel Schubert, who are all based in the company’s Boca Raton, FL office.
“This was not a run-of-the-mill deal, but Meridian was able to structure a loan that both the lender and the sponsor were comfortable with as a result of The Tridium Group’s solid business plan,” said Mr. Schubert.
Located at 606 North Carancahua Street in Corpus Christi, TX, Wilson Plaza is a 17-story office property spanning 270,000 square feet. Originally constructed in 1927, the landmark building is known as the city’s first sky scraper and houses 237 tenants and 300 parking spaces. Wilson Plaza is advantageously located near several restaurants, banks, City Hall and the Nueces County Courthouse, the city’s downtown business district, and the Corpus Christi International Airport.
Corpus Christi harbors one of the largest ports in the United States and has become a global player in energy production as the nation’s number one exporter of crude oil. With the recent approval of the port’s expansion and other industrial projects in the works totaling $50 billion, Corpus Christi’s office market is posed to grow in tow with its thriving economy.
“The value-add opportunity on this acquisition was very apparent. However, with more than 100 tenants in place and below-market occupancy, it was a challenge,” said Mr. Grimm. “The team effort between Meridian and The Tridium Group yielded a loan that features adequate funding for capital expenditures, tenant improvements and leasing commissions.”
“This deal had many moving parts. The asset was underperforming with numerous tenants on month-to-month leases and the property’s major tenant up for renewal,” said Mr. Kaminetzky. “Many lenders shied away from this deal, but Meridian was able to leverage its relationship with a non-recourse balance sheet lender to structure a deal that provided the lender with sufficient financial protections and coverage checkpoints, while still allowing flexibility for the borrower to execute their business plan.”
Founded in 1991, Meridian Capital Group is America’s most active dealmaker and one of the nation’s leading commercial real estate finance, investment sales and retail leasing advisors. In 2017, Meridian closed over 3,000 transactions across more than 200 unique lenders and sold nearly $1 billion in commercial property. Meridian represents many of the world’s leading real estate investors and developers and the company’s expansive platform has specialized practices for a broad array of property types including office, retail, multifamily, hotel, mixed-use, industrial, and healthcare and senior housing properties. Meridian is headquartered in New York City with offices in New Jersey, Maryland, Illinois, Ohio, Florida, and California.