WALTHAM, MA—An affiliate of Philadelphia-based Equus Capital Partners, Ltd. reports it has recapitalized the two-building, 288,127-square-foot University Office Park complex here.
The transaction involved a restructuring and recapitalization of a previous tenant-in-common ownership structure. Equus worked with Direct Invest, LLC on the TIC deal. No financial terms of the recapitalization and restructuring were released. In addition to its preferred equity infusion in the property, Equus also acquired more than 25% of the ownership interests in the buildings. Affiliates of Equus will serve as the managing general partner of the portfolio and perform property management services, company officials say. At the time of closing the University Office Park complex was 87% occupied.
“By working with Direct Invest, LLC in restructuring and recapitalizing the previous tenant-In-common ownership structure, Equus will be able to provide the properties with ample capital for base building upgrades, tenant improvements, and leasing commissions. With this infusion of equity, Equus will reposition the buildings and revitalize these well located properties,” commented George Haines, vice president of Equus, who oversaw the transaction for the firm.
The acquisition of the leasehold interest in University Park was made on behalf of BPG Investment Partnership IX, L.P. (Fund IX), Equus’ $310-million private equity fund.
Loretta Kelly, general counsel for Equus, says, “The structuring of the transaction, which needed to address the issues related to the tenants in common as well as of our fund, was an interesting challenge and I am pleased that we were able to navigate the many legal issues to a successful conclusion. We benefit greatly from the knowledge that we gained about the tenant-in-common ownership structure when used in a commercial real estate setting. I am confident that we can use that knowledge base in future transactions.”