Remington Financial Group, Inc. Secures $142,250,000 in Debt and Bridge Equity Financing for...

PHILADELPHIA -- Remington Financial Group, Inc., a real estate investment bank headquartered in Philadelphia, PA, recently secured $142,250,000 in debt and bridge equity financing on behalf of an undisclosed joint venture. The joint venture, comprised of a local operator and institutional equity

investor, was formed to acquire a portfolio of 14 office and industrial properties located in the Midwest and Southeast U.S. The portfolio's total purchase price amounted to $150MM for a total of 2.7MM square feet of space.

Within an extremely tight closing window, the acquisition and its financing were additionally complex as it entailed the purchase of 14 separate assets in 10 different states from three sellers. Each building was a single tenant property, therefore each purchase represented a sale/ leaseback of which each had unique features and accommodations satisfying the demanding needs of each separate tenant.

RFG structured one non-recourse fixed rate permanent mortgage that was collateralized by the properties, but not crossed. The financing, secured from JP Morgan Chase, financed 75% of the acquisition price at a rate just over 6% fixed for 10 years. The bridge equity financing increased the leverage to 97% of the purchase price, allowing the borrower two years to syndicate its equity. The bridge equity was structured as mezzanine debt priced over Libor, non-recourse and collateralized with the pledged ownership interest in the portfolio. RFG's known track record in this niche and its ability to structure and deliver bridge equity financing with leverage to 98% of the capital stack at rates in the 8-10% range played a major part in the borrower's decision to award RFG the exclusive financing mandate.

Matthew McManus, President of RFG says, "The buyers bought the portfolio at the right price, which allowed us to structure a very aggressive package of financing with unheard of flexibility. This allowed the borrower to close quickly on all tiers of financing in place, with 'one-stop' shopping ease."

The above transaction was the second portfolio financing transaction awarded to RFG by its client who has secured just shy of $500,000,000 through RFG in the past 6 months. Matthew McManus led the negotiations and handled the deal.

Remington Financial Group is a full-service boutique real estate investment bank that narrowly focuses on structuring and delivering debt and equity capital to sophisticated real estate owners and developers nationwide. As one of the leading firms that participates in joint venture equity and bridge financing, RFG's services include originating, evaluating, structuring, preparing and underwriting the financing request package, assistance with negotiations and coordination of placement and closing process. For more information on RFG, please visit www.remingtonfg.com.