Commercial Real Estate Finance

Archive for the ‘Llenrock News/Updates’ Category

Here’s some exciting news about Llenrock’s most recent completed deal, presented via press release:

FOR IMMEDIATE RELEASE

LLENROCK GROUP CLOSES ON $11.5 MILLION BRIDGE LOAN FOR FREDERICK, MARYLAND SHOPPING CENTER

PHILADELPHIA, PA (January 14 , 2013) – Llenrock Group, an independent real estate finance and advisory firm, is pleased to announce it has secured $11,500,000 in financing for the owner of Vista Shops, a community shopping center in Frederick, MD. The 110,000 SF shopping center at 1080 W. Patrick Street is anchored by Aldi Foods and Planet Fitness, with pad sites leased to Taco Bell and Bank of America. Llenrock Group advised the owner in obtaining a 3-year bridge loan from RAIT Financial Trust, including $500,000 to fund build-outs for future tenants.

The owner, Broad Street Capital, LLC, will use this financing to further stabilize and lease its property before seeking permanent financing. Broad Street Capital purchased the property in 2006 from United Healthcare, which used the facility as a call center.

Llenrock Group Senior Associate Chad Levitt explains, “Broad Street did an outstanding job repositioning the asset and leasing it up with quality tenants, but the time was not yet right to seek permanent mortgage financing.  We were able to secure favorable terms on a three-year bridge loan, which will allow the sponsor sufficient time to boost occupancy and NOI.”

Located on Frederick’s “Golden Mile” retail corridor, Vista Shops is easily accessible from Interstates 70 and 270. The shopping center is currently 80% occupied.

About the Company

Llenrock Group is an independent real estate advisory and investment banking firm in Philadelphia. Through its subsidiaries, Llenrock Advisors and Llenrock Realty Partners, they provide services in investment sales, direct investment, and structured finance. For more information, please visit Llenrock.com.

As a supplement to our usual post schedule, here’s some exciting news about Llenrock’s most recent completed transaction, presented via press release:

LLENROCK GROUP ANNOUNCES THE SALE OF 47-UNIT APARTMENT PROPERTY IN NORTHEAST PHILADELPHIA

 Philadelphia, PA (December 15, 2012) – Llenrock Group, LLC, an independent real estate finance and advisory firm, is pleased to announce the sale of the 47-unit Parkside Apartments in Northeast Philadelphia for $1,964,000. In an advisory role, Llenrock Group assisted Philadelphia-based firm LLA Realty, which represented the seller. The property was sold at a cap rate of approximately 9%.

The 4-story, 36,000 SF multifamily property is located at 4616 Leiper Street in Philadelphia’s Northwood neighborhood. Built in 1963, it features studio, one-bedroom, and two-bedroom apartments overlooking a city park. Thanks to its 100% occupancy and waiting list, as well as below-market rents at the time of sale, the property presented strong value-add potential for prospective buyers.

Speaking of his role in this transaction, Llenrock Group’s founding partner, Andrew Benioff, said, “Llenrock was pleased to assist in selling this little gem in the Frankford area of Philadelphia. Though the property had been significantly renovated and was fully occupied, there was still plenty of opportunity to add value to this asset, which attracted the attention of numerous potential buyers.”

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About the Company

Llenrock Group is an independent real estate advisory and investment banking firm in Philadelphia. Through its subsidiaries, Llenrock Advisors and Llenrock Realty Partners, they provide services in investment sales, direct investment, and structured finance. For more information, please contact  Eric Hawthorn at ehawthorn [at] llenrock [dot] com or visit Llenrock.com.

A quick notice for our readers in Philadelphia. Llenrock Group is pleased to announce NAIOP‘s 2012 Holiday Party is coming up next week!

Here’s all the info:

The Greater Philadelphia Chapter of NAIOP cordially invites you to our annual Holiday Party!

This year’s featured speaker is Dan Fitzpatrick, Mid-Atlantic Regional Executive for RBS Citizens and President of Citizens Bank of Pennsylvania. Mr. Fitzpatrick also serves as Chairman of the Greater Philadelphia Chamber of Commerce. Join us for a fun holiday gathering filled with information and networking opportunities!

Date:

Wednesday, December 12, 2012
Registration: 11:30 AM / Luncheon: 12 PM

Location:

The Racquet Club of Philadelphia (Reading Room)
215 S. 16th Street, Philadelphia, PA 19103

Cost:

$50 Member / $75 Non-Member (includes lunch and open bar)

 To register, contact Claire Weston at naiopphillychapter01 [at] comcast.net.

 As a supplement to our usual post schedule, here’s some exciting news about Llenrock’s most recent completed transaction, presented via press release:

LLENROCK GROUP ANNOUNCES THE CLOSING OF $6 MILLION IN PERMANENT FINANCING FOR FAIRFIELD INN & SUITES IN CENTRAL PENNSYLVANIA

PHILADELPHIA, PA (November 7, 2012) – Llenrock Group, an independent real estate finance and advisory firm, is pleased to announce it has secured a total of $6,000,000 in permanent financing for a Fairfield Inn & Suites by Marriott near Harrisburg, PA.

Located just outside Pennsylvania’s capitol, The Fairfield Inn & Suites is easily accessible from the Pennsylvania Turnpike and other major throughways. The 3-story hotel features approximately 80 rooms and suites, complimentary high-speed Internet in guestrooms and public areas, an indoor pool, whirlpool spa, and fitness center. Llenrock Group secured the 10-year, $6,000,000 financing from C-III Capital Partners. The deal closed quickly thanks to the hotel’s strong performance and optimal market.

Andrew Benioff, Founder and Managing Partner of Llenrock Group, attributes the smooth completion of this deal to the increasing strength of the capital markets. Mr. Benioff comments, “Thanks to recent improvements in the capital markets, particularly the CMBS market, we were able to complete this deal quickly and easily.”

The hotel benefits from nearby market drivers such as state government offices, Hershey Park, the Pennsylvania Farm Show Complex, and Pennsylvania Dutch Country. 

About the Company

Llenrock Group is an independent real estate advisory and investment banking firm in Philadelphia. Through its subsidiaries, Llenrock Advisors and Llenrock Realty Partners, they provide services in investment sales, direct investment, and structured finance. For more information, please contact  Eric Hawthorn at ehawthorn [at] llenrock [dot] com or visit Llenrock.com.

Last month, Llenrock‘s Andrew Benioff chaired a panel discussing the benefits and risks of family home aggregation, a strategy gaining prominence in today’s depressed single-family market. The session was part of IMN‘s U.S. Real Estate Opportunity & Private Investment Forum, a two-day conference in New York City.

Single-family aggregation strategies are gaining traction in the U.S. because of the continuing austerity of the post-bubble housing market. There’s plenty of supply, of course, and lots of people who want to own homes. But the ongoing uncertainty over Fannie and Freddie, along with high unemployment and more restrained lending practices, are keeping the American dream of home ownership unrealistic for many.  Read the rest of this entry »

Last Thursday, I began recounting some of the discussion at a recent CFO Panel here in Philadelphia. Presented by the local branch of the Cornell Real Estate Council, this event featured five CFOs representing major REITs (and one non-REIT) in the Philadelphia area: Hersha Hospitality Trust (HT), CubeSmart (CUBE), Brandywine Realty Trust (BDN), PREIT (PEI), and Morgan Properties. The event was understandably well attended.

As I pointed out last week, the CFOs have distinct but somewhat nerve-wracking vantage points in their companies. They see the direct relationship between corporate decisions, shifting market fundamentals, and the fluctuation of their properties’ and company’s value. They expressed trepidation about political gridlock, property oversupply, and general economic uncertainty. But we covered most of the anxiety-provoking subject matter on Thursday. Today, I want to discuss opportunities.

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On Tuesday, I had the opportunity to join 100+ professionals from the real estate community at the monthly luncheon of the Cornell Real Estate Council‘s Philadelphia chapter. This event, attended by both Cornellians and non-Cornellians (i.e., me), was the last one before the organization’s summer hiatus. The event featured a panel of CFOs from five major firms: CubeSmart (YSI), Pennsylvania REIT (PEI), Morgan Properties (not actually a REIT yet), Hersha Hospitality Trust (HT), and Brandywine Realty Trust (BDN), and offered a comprehensive look at the operations of an American REIT.

I suspect CFOs are uniquely qualified to discuss the activities of their REITs. Not only do CFOs have a first-hand view of the corporation’s strategy and decision-making, they get to see the results of these moves through the universal language of–you guessed it–dollars. Read the rest of this entry »

A quick notice for our readers in Philadelphia. Llenrock Group is pleased to announce NAIOP‘s 2012 Trolley Tour is almost here! This event includes a trolley ride to some of Philadelphia’s most exciting development projects, with beer and refreshments along the way. After the tour, guests will enjoy an open bar and appetizers at Xfinity Live!

The event is Thursday, June 14, from 1:30 to 7:00 PM. This promises to be a fun and unique networking opportunity, but space is limited! The cost is $40 for NAIOP members, $55 for non-members, and $25 for Developing Leaders (under the age of 35).

To register, contact Claire Weston at naiopphillychapter01 [at] comcast.net. For a copy of the flyer/registration form, feel free to contact me at ehawthorn [at] llenrock.com. Hope to see you there!

On Wednesday, Llenrock Group attended the quarterly meeting of the Philadelphia Real Estate Council. We had the pleasure of listening to two guest speakers, as well as several other prestigious members of the Philadelphia real estate world, as they weighed in on the important issues that are affecting development and commercial real estate in the city.

Read the rest of this entry »