"We are comfortable lending on out-of-favor assets and providing liquidity in areas where other capital may be unavailable," says Michael C. Szwajkowski, managing director of CapitalSource's structured finance unit. Szwajkowski notes that the greater Boston area is feeling the effects of the downturn in office occupancies nationwide, with this specific market also being impacted by a concentration of technology-related companies. "As a result, many lenders have curtailed their lending efforts in the area and few transactions have taken place," he points out.
Szwajkowski says that his company pursued this financing due to "the strength and expertise of the real estate operator, the significant amount of capital the investors committed to the transaction, and a belief in the long-term fundamentals of the market."
CapitalSource's $20 million funding commitment includes holdbacks for interest and future leasing costs.
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