Stephen Blue, VP with Buchanan Street Partners, tells GlobeSt.com that the transaction constitutes a full recapitalization of the asset, which Steadfast owned and for which Buchanan provided new equity for the recapitalization. The recapitalization includes a new, five-year, fixed-rate loan with GE Capital , which Steadfast arranged through an existing relationship with GE.
The new financing provided for the retirement of the existing loan, paid off the existing equity partners and provided the necessary capital to get the project stabilized. The capital will be used primarily to provide funds for tenant improvements and leasing commissions on the remaining vacant space.
Blue points out that this is Buchanan Street Partners' first partnership with Steadfast, which specializes in acquiring and managing value-added commercial properties. He describes the property as "in a prime position to capture new leasing activity as market interest continues to pick up in South Orange County." Among the existing tenants are American Sterling Bank, Homestar Mortgage and Skilled Healthcare.
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