As reported by, the Mountain Lakes, NJ-based VisionEquities acquired theproperty from Normandy Real Estate Partners for an undisclosedprice. The building was built in 2002 as the intended HQ forGlobespan Virata, but became surplus property when that company wasacquired by rival Conexant. Normandy acquired the asset vacant in2005 for a reported $23.5 million.


The latest financing was obtained from New York City-based GEReal Estate, specifically that company's flexible fixed-ratefinance program. According to information released by GE RealEstate, the loan was funded at a debt service coverage of close toa 1.0x DSC based on in-place NOI at closing for a deal that hasimmediate upside potential. The loan is interest-only for twoyears, with three one-year extension options. Other provisionsinclude a flexible pre-payment schedule and no requirement for anMAI appraisal.


"Vision Equities understands this market and has been able tosignificantly improve occupancy levels for this asset," says DavidCohen, Northeast regional director for GE's North America LendingGroup. In the 18 months or so that Vision has had the building inits portfolio, it's been able to boost occupancy from 47% to 79%,including new leases with Fragomen Del Rey, Healthnet and VSNL.


"GE Real Estate recognizes our ability to perform, and providedus with a low-cost, flexible fixed-rate loan despite thesignificant changes in the credit markets," says Vision Equities'managing partner Fred Arena, in a statement. "We appreciate theirconfidence in us."

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