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CHERRY HILL, NJ-Endurance Real Estate has picked up a loan for $31.9 million secured by its Cherry Hill Business Park here. The Bala Cynwyd, PA-based Endurance acquired the property at the end of June from First Industrial Realty Trust. It was an all-cash deal, but Endurance officials simultaneously revealed then that they would place debt on the portfolio post-closing. The sale price was not released, but industry sources put it in the $50-million range.

Donna Falzarano and James Gunning of CB Richard Ellis capital markets, debt and equity finance arranged the package through the Des Moines-based Principal Life Insurance Co. The non-recourse loan is made up of both floating-rate and fixed-rate components, according to Gunning. The floating rate loan amounts to $7.4 million with an interest 270 basis points over three-month Libor, while the fixed rate portion is $24.5 million at an interest rate of 5.92%. Terms are 10 years with a 30-year amortization on the fixed-rate component, and 65% LTV.

“In light of today’s capital market environment, we were pleased with the overall financing package that we received, and the flexibility that it provides as far as selling individual buildings,” Benjamin Cohen, president and co-founder of Endurance, tells GlobeSt.com. “It was a please to work with principal and CBRE every step of the way.”

“The debt markets have gotten really difficult,” says co-founder and CEO Bill White. “LTVs are down and spreads are up significantly. We did O.K. here, because it’s a prime product in a great location. Most important, our ability to close the purchase all-equity and then put the loan in place later on is what landed us the deal.”

Cherry Hill Business Park consists of 737,300 sf spread over 15 single-story office/warehouse/flex and retail buildings along Springdale Rd., Esterbrook and Pin Oak lanes and Keystone and Olney avenues near Route 70 in Camden County. Those buildings, the largest of which are 1939 Olney Ave. and 2030 and 2040 Springdale Rd., are currently 92% leased, with major tenants including JDR Shoe Warehouse, Garden State Discovery Museum, Avalon Flooring and Flying Fish Brewery.

The property totals 87 acres, but 25 acres remains undeveloped at this point. About 17 acres fronts on Springdale Road, the park’s primary retail corridor.

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