Wells Fargo has provided $136.5 million in financing from Wells Fargo to Oak Street Real Estate Capital for the acquisition of a 1.3 million sq ft office portfolio.
The five single-tenant assets, occupied by MetLife, are in New Jersey, New York, Ohio and Rhode Island. They include 501 US Highway 22 in Bridgewater and 344 Madison Avenue in Convent Station, New Jersey; 5950 Airport Road in Oriskany, New York; 9797 Springboro Pike in Dayton, Ohio and 700 Quaker Lane in Warwick, Rhode Island.
The five-year, interest-only balance sheet loan includes 65% leverage and two one-year extension options. The floating interest rate was fixed via a swap at closing, and the loan “offers pay downs via flexible asset release provisions,” according to CBRE Capital Markets’ Debt & Structured Finance team, which arranged the deal on behalf of the sponsor.
“The financing was structured to provide Oak Street with a strong leveraged return with the flexibility to execute on their business plan going forward,” said Peter Marino, a CBRE EVP, in a statement. “Oak Street’s ability to close on the acquisition of a complex portfolio in a compressed timeline over the holidays was extremely impressive.”
Marino arranged the financing on behalf of Oak Street with associate Elizabeth Arnold, EVP Shawn Rosenthal and SVP Jason Gaccione.
“These properties are an excellent addition to our net lease portfolio which is designed to create stable long-term cash flow backed by investment-grade corporate credits,” added Jim Hennessey, CFO and managing partner at Oak Street. “We believe our ability to execute complex transactions quickly provides tremendous value to our tenants and investors.”