NEWARK-Owner Advance Realty Group has picked up $95 million in refinancing for its One Gateway Center, a 500,000-sf, 26-story, class A office tower here. The financing, arranged by NorthMarq Capital, was based on a 10-year fixed-rate term and provided by IXIS Real Estate Capital.
"This was a terrific execution by Advance and IXIS, which followed an $85-million bridge loan funded by IXIS during February 2006," says Martin Klebanoff, SVP and co-managing director of NorthMarq's regional office in Parsippany. "A new lease for more than 100,000 sf was struck approximately four months after closing of the bridge loan, a testament of the market's dynamics, the owner's creativity and the lender's vision to mitigate all parties' risk by fixing the rate for the new permanent mortgage."
That 100,000-sf-plus signing involved the law firm of Gibbons PC, which relocated from elsewhere in Newark. That deal helped bring the building to 95% occupancy by taking much of the space vacated by the FBI back off the market. As reported by GlobeSt.com, the Bedminster-based Advance Realty bought the building in late 2002 from the Gale Co. and Tishman Speyer for a reported $83 million, around the time that the FBI vacated its 160,000 sf on nine floors in a relocation to a new nearby tower.
Advance subsequently launched a multimillion-dollar renovation of the building, including redevelopment of its retail component. One Gateway Center was completed in 1971 as the first building in the four-tower, 2.3-million-sf Gateway Center, whose buildings are currently under multiple ownership. The complex includes a Hilton Hotel and is connected by enclosed skywalk to Newark Penn Station, a major commuter hub.
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