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ALPHARETTA, GA-A locally based real estate partnership hasacquired a 54,491-sf class A office building at 6435 Shiloh Rd. inthe Corporate Campus at the Meadows for $8.5 million, or $155 persf. The acquisition price equated to an approximately 7.5% going-incapitalization rate.

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New York City-based Sonnenblick Goldman arranged thenon-recourse, 10-year fixed-rate financing for the acquisition.Sonnenblick secured more than 96% leverage for the borrower in thetransaction, with a $6.9-million senior loan provided by New YorkCity-based Dillon Read and a $1.25-million mezzanine loan providedby New York City-based RCG Longview, which is an affiliate of hedgefund Ramius Capital Group.

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Dave Karson, of Sonnenblick Goldman, tells GlobeSt.com that theseller acquired the property in partnership with GE. "This was theone stable asset in a portfolio," he says. "The seller decided tosell it to help capitalize the balance of the portfolio."

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The building is 100% triple-net leased to AXA Advisors for aterm of seven years, which expires in 2013. AXA Advisors is ratedAA- by Standard & Poor's and Aa3 by Moody's. "The tenant had atermination right after five years, which made the high-leveragedfinancing more challenging," Karson says. "There's a great appetitefor net-leased property, both on the finance and the acquisitionside, and we were able to achieve an interest-only loan at a veryattractive spread while significantly limiting reserves."

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Constructed in 1998 for AXA Advisors, the brick buildingcontains floor-to-ceiling glass curtain wall and contains a datacenter, corporate training center, cafeteria and executive officespace. "Given AXA Advisors' significant capital investment in thebuilding and its strategic location as a training center, webelieve the tenant will extend their lease and reduce residual riskfor both the borrower and lender," Karson says.

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