MORRISTOWN, NJ-The Hampshire Cos., based here, has obtained a $185-million credit facility for its Hampshire Partners Fund VI, a $235-million equity value-add real estate investment fund. The funding was secured by Michael Sherman, director, and Efrat Sharon, senior analyst in the New York office of CBRE|Melody, and the transaction was completed with the help of CB Richard Ellis' Tri-State Investment Team, led by Jeff Dunne. The funding was provided by Germany's HSH Nordbank AG.
The credit facility is helping complete the repositioning of a total 17 real estate assets acquired by the fund, part of a portfolio of nearly 2.8 million sf, as well as facilitating additional acquisitions, according to James Hanson, president and CEO of Hampshire. Hampshire Partners Fund VI owns properties in New Jersey, New York, Connecticut and Pennsylvania, "all suited for value enhancement," Hanson says.
"We were in the process of completing the investment phase of the fund and needed to find replacement financing for our subscription facility, since is it a value-add fund," Hanson says. "Our needs were not just replacement financing, but also financing to help reposition the assets, which includes basic building improvements, tenant improvements and leasing commissions.
"Consequently," he continues, "we required a flexible lender to provide us with the appropriate structured financing. HSH Nordbank was the right lender to complete the transaction. The commitment and closing process was marshaled step-by-step, which was especially important due to the fact that this is a new relationship for us with HSH Nordbank. It required special care and attention."
"This was an opportunity to work with an experienced, sophisticated borrower and a lender with expertise in structuring credit facilities," says CBRE|Melody's Sherman. "The financing structure allowed Hampshire Partners Fund VI to maximize its capacity to buy and reposition value-added opportunities, and to benefit from the current interest rate environment."
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