GE Capital Refinances for Partnership

GE Capital Real Estate has put together a $48.7 million first mortgage package for a partnership acquiring Two Gatehall Dr. here, a 418,000-sf class A office property. Morgan Stanley Real Estate Fund II and Gale & Wentworth, the Florham Park, NJ real estate investment firm, are key players in the partnership.

“The biggest hurdle we faced was timing,” says Gale & Wentworth’s Chris Sameth. “We contacted GE Capital just two weeks before we needed to close the loan.”

One immediate challenge for the new owner is to stabilize the property, given that sole tenant CIT is vacating the premises next year. The deal has been structured to take that into account, providing the proceeds of the loan as new leases are signed. At presstime, the new owners were said to be negotiating with two major tenants.