ffaloan.com - mortgage loan

Menu

Enter your search terms Submit search form

Simone inks historic $90m office building loan

In what is the largest single permanent loan for an office building in the history of the Bronx, Simone Development Companies announced the placement of a $90 million permanent first mortgage on its Hutchinson Metro Center office complex this week.

Houlihan-Parnes/iCap Realty Advisors, LLC arranged for the permanent financing for the 460,000 s/f Class A office building. The 10-year loan was provided by Artesia Mortgage Capital Corporation, which was represented by James Barry. Gus Costaldo, Jack Houlihan and James J. Houlihan of Houlihan-Parnes/i Cap Realty Advisors represented Simone Development and negotiated the terms of the intricate financing package.

The placement of the permanent financing signifies the completion of the hugely successful first phase of the Hutchinson Metro Center, which is nearly 90% leased.

Speaking at a news conference at the Hutchinson Metro Center, Joseph Simone, President of Simone Development Companies, said, "This deal is the culmination of years of hard work by my company and our partners in creating one of the most exciting and successful new office developments in the New York Metropolitan area.

"The Bronx is enjoying a renaissance in economic development and we're proud to play a key role in the borough's rebirth."

Simone expects to announce plans for the next phase of development of the Hutchinson Metro Center within the next few months.

The Hutchinson Metro Center is a new multi-phased state-of-the-art Class A office complex with extensive parking in a campus setting. The first phase of development features four floors totaling 460,000 s/f of space. The 18.5-acre site can also accommodate possible future expansion for up to 1 million square feet in additional buildings.

The Hutchinson Metro Center is the first class-A office complex to be built in the Bronx in more than a decade. The building's roster of tenants includes Mercy College, Visiting Nurse Service of New York, New York City Housing Authority, the Internal Revenue Service and University Diagnostic Medical Imaging. The office complex is also home for a host of other medical related tenants who were attracted by the building's close proximity to some of the region's top medical institutions including Albert Einstein College of Medicine, Montefiore Medical Center and Calvary Hospital.

Based on demand for class-A construction in the Bronx, and the project's success, Simone Development Companies has purchased an additional 24.5 acres on site, creating an as-of-right opportunity for an additional 640,000 s/f of office space.

Because the development rights are already approved, the Hutchinson Metro Center represents one of the largest sites available in New York City for immediate development. The first phase is expected to generate between 2,500 and 3,000 new jobs and create 500 construction jobs.

COPYRIGHT 2005 Hagedorn Publication
COPYRIGHT 2005 Gale Group