HARTFORD-The ownership of the Constitution Plaza complex here has secured a $60-million refinancing deal with MetLife Inc. Capital Properties, which is headquartered in New York City, committed to a five-year, fixed-rate loan with lender MetLife on the multi-building complex that includes two class A office towers. The loan, which included several years of par prepayment, was at a rate below 6%, say officials with Meredith & Grew, which brokered the transaction.
The property, which was originally developed in the early 1960s, is situated on eight acres and includes an attached 1,650-space parking facility.
EVP Kevin Phelan and assistant VP Seth Rosen of Boston-based Meredith & Grew represented Capital Properties in the transaction. Phelan terms Constitution Plaza "an exception asset located in a challenging office market."
According to an analysis of the Hartford market published by CB Richard Ellis, the city remains a tenant's market at the moment. The brokerage firm reported the vacancy rate in the Hartford CBD was 18.3% at year-end 2006. The vacancy rate for the overall City of Hartford office market was 19.4%.
Commenting on the refinance deal of Constitution Plaza, Meredith & Grew's Rosen states, "MetLife took the time to understand the intrinsic value of the real estate, and the cash flow benefits of the parking facility. They provided a flexible structure that fit nicely with Capital Properties' strategic plan for the asset."
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