WAKEFIELD, MA-Looking to fund an acquisition in Denver—which is expected to close on Wednesday—Franklin Street Properties Corp. has closed an unsecured term loan with a group of banks. The total borrowed under the term loan is $220 million.

The term loan has a term of seven years that matures on August 26, 2020. It includes an accordion feature that allows for up to $50 million of additional borrowing capacity subject to receipt of lender commitments and satisfaction of certain customary conditions. The term loan bears interest at either a LIBOR based rate plus 145 to 220 basis points, depending on the company's total leverage ratio for the applicable period (LIBOR plus 165 basis points at August 26, 2013); or a rate equal to the bank's base rate plus 45 to 120 basis points, depending on the company's total leverage ratio for the applicable period (the bank's base rate plus 65 basis points at August 26, 2013). Although the interest rate on the term loan is variable, the company elected to fix the base LIBOR interest rate at 2.32% per year for seven years by entering into an interest rate swap. Based upon the company's total leverage ratio, as of August 26^th, that puts the effective interest rate on the loan at 3.97% per year.

The Denver building, at 1001 17^th Street, is a 20-story, multi-tenant office tower with a retail plaza. It occupies 656,000 square feet in the city's CBD and its occupancy percentages are moving up because some leases will start in the fourth quarter, CFO John Demeritt tells GlobeSt.com. The company is looking to add leases, he notes. Back in May, Franklin Street acquired 1999 Broaday, also in Denver.