In January 2003, Fenley hired Holliday Fenoglio Fowler LP to explore capital alternatives for the properties, that includes 11 sites in the Louisville suburbs and two in the CBD. The portfolio was attractive then, listed at about 90% leased, with the buildings averaging four years old.
It's not clear what prompted the company to wait five years to make a decision with the properties, though back then David Fenley, president and CEO, indicated that he wanted to keep the buildings. A spokeswoman for the company refused on Thursday to discuss the recent financing.
The properties are now 88% leased to more than 100 tenants, including ADP, Allstate Insurance, IBM, Liberty Mutual and Wachovia Securities. The sites include the three-building Fenley Office Park, the five offices at Corporate Campus at Hurstbourne Green, the 119,000-sf One Olympia Park Plaza and the 104,000-sf One Triton Office Park at Eastpoint Business Park.
Joel Traut with GE Real Estate arranged the first mortgage. Jeremy Chism, VP at CBRE, arranged the financing. Chism tells GlobeSt.com that it has been a challenging environment to finance most property types, not just office. "However, good, quality deals with solid sponsorship are attracting mortgage capital," he says. "Over the past five quarters, the Louisville office market has been bucking national trends by providing nearly one million sf of positive absorption, across all submarkets. Occupancy levels are increasing without sacrificing rental rates."
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