DETROIT—Few properties in the metro area are as recognizable asthe 2.15-million-square-foot Southfield TownCenter, a collection of five towers and a retail pavilionin suburban Southfield. But the suburban office market has hit arough patch as many corporations have decided to migrate downtown, and tenants now occupyonly 67% of the center. But New York-based 601WCos. has decided to take a chance, and recently closed a$177.5 million purchase of the complex, and plans to spend around$40 or $50 million on upgrades to boost its desirability.

Meridian Capital Group, LLC, also of New York,helped close the deal by arranging a $142 million mortgage for thepurchase. The 10-year loan features three years of interest-onlypayments and was provided by Deutsche Bank. Thistransaction was completed by Meridian Capital Group managingdirector, Rael Gervis.

“Meridian leveraged its strong position with CMBS lenders toefficiently make a market for financing this unique asset andstructure highly accretive long-term financing at 80% of thepurchase price, despite the property's 67% occupancy rate,” saidGervis in a prepared statement. He was not available for furthercomment. “Meridian was able to get the lender comfortable with thetransaction based on an acquisition price that is substantiallybelow replacement cost, the iconic status of the asset and, mostimportantly, the strength and experience of the sponsorship,” headded.