ALLENTOWN, PA — Mission Capital Advisors arranged $41 million in acquisition and repositioning financing for 1110 American Parkway NE, a 563,000 s/f , class A office building in the heart of Pennsylvania’s fast growing Lehigh Valley.
The Mission Capital team of Jonathan More, Alex Draganiuk and Axel DeAngelis represented Patriot Equities on an exclusive basis in securing the financing.
“Our team was tasked with the challenge of arranging full leverage financing on a short-fuse acquisition with 40 days to close. We were also presented with a host of moving parts and unknowns, such as substantive property lease-up during the contract period, including post-lender term sheet execution prior to loan closing, which required additional negotiation and capital source flexibility,” said More. “The Property itself is the top suburban office asset in Pennsylvania. The Sponsor succeeded in tying it up directly off-market at a very attractive basis after 10 years of courting the seller. Patriot Equities’ institutional-quality sponsorship, along with aggressive and exemplary leasing prowess during the contract period, helped our team craft the right story needed to nearly full-leverage financing.”
The 2002-built, class A office property was developed by a subsidiary of Lucent, an AT&T joint venture, which spared no expense in creating this best-in-class asset with top-tier infrastructure and amenities. Upon acquisition, Patriot Equities is set to invest approximately $7 million in capital improvements, including renovations to the lobby and common areas. The sponsor will also initiate tenant improvements for the 475,000 s/f of leases negotiated and executed during the contract period.
“With Patriot Equities’ reputation as a premier real estate investor and the excellent condition of this class A property, we received significant interest from wide array of capital sources,” said Draganiuk.