JLL Capital Markets and Progress Capital said Monday they arranged $113.5 million in financing for the acquisition of a portfolio with more than 816,000 square feet of office space, and a parking garage with 901 spaces, in Newark’s Central Business District.
The two firms obtained a three-year, floating-rate loan from ACORE Capital LP on behalf of a partnership comprising SHIFT Capital, the Hanini Group and CoInvestment Partners. Loan proceeds were used to acquire the property and will also fund future capital expenditures and leasing costs, according to the announcement.
Located in the Prudential Insurance Campus, both 707 Broad St. and 153 Halsey St. were built in the 1920s and are leased on a long-term basis to The State of New Jersey, where more than 3,500 workers across 35 departments are employed.
“The sponsor developed a thoughtful business plan designed to create tremendous long-term value for Newark and build on its rich history of innovation and civic engagement,” said Director Matthew Pizzolato of the JLL Capital Markets team, who worked with Senior Managing Directors Michael Klein and Jon Mikula, along with Progress Capital Partner Brad Domenico, to represent the borrower. “ACORE Capital recognized the value created by the team and stepped up to offer a high leverage, structured debt solution that will allow the sponsor to execute their business plan.”
Last week, JLL Capital Markets announced team members Senior Managing Director Michael Klein, Director Max Custer and Associate Gerard Quinn represented a borrower to arrange refinancing for a multi-housing community in Fairfield.