CBRE Capital Markets’ Debt & Structured Finance has secured a $140 million loan from Morgan Stanley for the refinance of Huntington Center, a 37-story, 907,010 sq ft Class A office tower in Columbus, Ohio, Real Estate Capital has learned.
The 10-year loan provided to a joint venture led by Carlton Associates, Lakestar Properties and Hines carries five years of interest-only payments.
Refinance opportunities stemming from rising vintage loan maturities have allowed for a rebound in CBRE’s lending volumes, with Q2’s US Lending MarketView report showing that dollar volume was up 2.1 percent from the previous quarter and 5.7 percent year-over-year.
EVP Shawn Rosenthal, executive president Peter Marino and SVP John Parrett secured the non-recourse loan on behalf of the Huntington Center ownership.
“The capital markets embraced this trophy asset and its diverse roster of credit tenants with a significant weighted average lease term, as well as ownership’s specific business plan to reinvest capital directly in the asset,” Rosenthal said.
Constructed in 1984, the one-million-sq-ft, 37 story property at 41 South High Street features four atriums, one at street level and one each on levels 13, 20 and 28. It also includes 27,000 sq ft of retail space, a 1,000-car parking facility.
CBRE’s Q2 loan count data indicated that refinance deals accounted for a higher than average percentage of permanent loan deals in Q2 — 58 percent for refinance versus 42 percent for acquisition — though in previous quarters this has typically been split evenly. Banks pulled most of the weight, tracking significant gains with 49 percent of total volume compared to just 31 percent in Q1. The Q3 report is set for release later this month.