After providing one of the largest construction loans of the month — a $556m loan for a 47-story office tower set to rise in New York City — Cornerstone Real Estate Advisers has provided $225m in loans on new developments in two other US cities.
The MassMutual Financial Group affiliate has provided $165m in financing to New England Development and Clarion Partners for Palm Beach Outlets in West Palm Beach, Florida, a 459,633 sq ft retail center.
The collateral on the long-term, fixed-rate loan includes land for the future development of 105,000 additional sq ft of retail space.
Cornerstone also provided $60m in mezzanine financing to for the construction of a 755-room, dual-branded W + Element hotel development in Center City Philadelphia, Pennsylvania, part of a $160m facility that also includes a $100m senior loan from Bank of the Ozarks. Vine Street Matthews, a joint venture between Matthews Southwest and Vine Street Ventures, is the developer of the 755-room project.
The Philadelphia hotel complex — at 1441 Chestnut Street — will be one block from the newly-redeveloped Dilworth Plaza and City Hall and minutes from the recently expanded Pennsylvania Convention Center in downtown Philadelphia. The 55-story hotel complex, operated by Starwood Hotels & Resorts Worldwide, is scheduled to open in late 2017.
The 58.5-acre Palm Beach Outlets — at 1751 Palm Beach Lakes Boulevard — was completed in February 2014. It consists of eight small retail buildings surrounding two larger retail structures in a racetrack design layout plus 3,182 parking spaces and five out-parcels (one to-be-developed). The property is anchored by Saks Off 5th Avenue and is 95.8 percent leased to 120 additional tenants including Nike, Forever 21, Gap, Banana Republic, J.Crew and Ann Taylor. HFF arranged the financings.
Cornerstone also provided, in April, a $70m loan to Invesco Real Estate and San Diego-based developer Cruzan for the acquisition of a two-building office campus in San Diego, California. CBRE arranged that deal.