BOSTON-One of Boston's most architecturally significant office buildings has been underpinned with a 21st century mortgage for $6 million. The note from Principal Global Investors on behalf of Terra Firma LLC was arranged by EagleBridge Capital, which guided the ownership through a defeasance process to secure the funding.

"We concluded that by defeasing the current loan, our client could lower the rate and increase cash flow by putting a new mortgage in place," says EagleBridge principal Ted Sidel, whose Boston-based firm has become adept at helping borrowers when a defeasance approach is required to repay existing mortgages. The concept has evolved rapidly since emerging in recent years as a way to address one of the more onerous elements of CMBS financing.

Although it is more than 100 years old, 33 Broad St. is a fixture in Boston's Downtown office market. The renaissance revival design was a product of Shepley Rutan and Coolidge, Boston's leading architectural concern at the turn of the 20th century, and claims a place on the National Register of Historic Places. The 12-story, 41,000-sf building was renovated at the start of the decade by Fairlane Properties, a local firm that updated the elevators and common areas and boosted tenancy before selling it in 2003.

State Street Eye Health occupies the ground level retail of 33 Broad St., while the office space houses a mix of accountants, attorneys, money managers and one mortgage banker—EagleBridge Capital itself, which could stake a claim as a full-service firm by relocating into the building after operating several years down the street. "We are very pleased with our new office space," says EagleBridge principal Brian Sheehan, who worked with Sidel on 33 Broad St.'s new mortgage. EagleBridge assists clients for debt and equity financing and joint ventures for most property types, including flex and office buildings, hotels, multifamily and retail.