Square Mile Capital Management has originated a five-year, $33.3 million floating-rate loan secured by the Cypress Financial Center in Fort Lauderdale, Florida, part of a concerted effort to do more business in the Sunshine State.
The loan to a joint venture of an investment fund managed by an affiliate of Apollo Global Management and Steelbridge Capital was used to refinance existing debt on the property and provides funding for capital improvements and leasing costs.
The financing fits the lender’s objective to do more deals in the region. “We are actively looking to increase our presence in the Southeast, with a particular focus on South Florida,” Square Mile VP Eric Cohen said in a statement.
In April the firm announced that it had originated a $26.5 million mezzanine loan secured by Hialeah Rail Yards, a 228-acre Rail Yard/Intermodal Center, next to the Miami Airport, owned by a Fortress Investment affiliate.
The owners of the Cypress Financial Center, whose tenants include MetLife, TD Bank and Marcus & Millichap, paid a reported $32.55 million for the 11-story, 197,000 sq ft office building in September of 2014, a significant discount from the $48 million its previous ownership group paid for the asset in 2006. Constructed in 1988, the property sits on a 2.8 acre site directly along I-95 in the Cypress Creek submarket of Fort Lauderdale and includes a 785-space, six-level parking garage.
Other recent Square Mile financings included a $34.7 million loan in December on the acquisition of 100 West Broadway in Long Beach, California. The previous month Square Mile Credit Partners, an investment fund managed by Square Mile, originated a $26.8 million first mortgage loan on Penrose Plaza in Philadelphia’s southwest submarket.
In March the lender placed a $24.5m mezzanine loan for the construction of a McSam Hotel Group hotel near the up-and-coming Hudson Yards development on Manhattan’s west side.