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PHILADELPHIA- A pair of foreign banks has provided $175 million in first mortgage financing for the Mellon Bank Center, a 1.3-million-square-foot Downtown office tower here. Medalist Capital arranged the 10-year non-recourse paper, which carries a 5.66% fixed rate for the first seven years and three years of interest-only payments followed by a 30-year amortization.

Owner Newton, MA-based HRPT Properties Trust is using the financing to pay off debt under its revolving credit facility. The 54-story Mellon Bank Center, at 1754 Market St., was built in 1990. Major tenants other than Mellon include energy firm Sunoco and chemical company FMC Corp.

The deal, a large one in a tight financial atmosphere, got done largely because of HRPT’s reputation as an owner and the credit of the asset’s tenants, Richard Williams, a senior vice president at Charlotte-based Medalist, told GlobeSt.com. “The capital markets have improved a fair amount from a year ago, especially for public companies,” he said, but pointed out that the market is still volatile and financing deals take a long time to get done.

The building’s location in the Philadelphia market also helps, being a high-quality facility in a locale with a diverse workforce. “Relatively speaking, it’s been as stable or more so than most metro markets,” Williams pointed out.

HRPT owns four other buildings in Downtown Philly: Centre Square, at 1500 Market St.; 1600 Market St.; 1525 Locust St.; and One Franklin Plaza, at 16th and Race streets. HRPT operates 515 office and industrial properties across the country.

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