Graebel has signed a 10-year lease with several options with the property owner, a Morris County, NJ-based industrial developer. As far as the loan itself, the interest rate will float at prime during construction and then fix at a predetermined spread over the Treasury constant for the 10-year permanent loan term. Payments during construction will be on an interest-only basis, and a 20-year amortization schedule will be used during the permanent loan period. The loan converts from recourse to nonrecourse status once the property is completed and occupied by Graebel.

The $5 million loan was 75% of the MAI appraised value at the time of closing. The lender was a New York-based bank with which Houlihan-Parnes has closed several transactions in recent years.