Norwalk, CT, November 8, 2007 – GE Real Estate announced today it provided a $55.65 million on-book loan to a joint venture between a fund sponsored by Urdang Capital Management, Inc. and Griffith Properties for the purchase of Burlington Woods, a three-building, Class A office park located along Route 128 north of Boston. The borrower plans to take advantage of the strong demand in the Burlington, MA market by leasing up the property’s upcoming vacant space to market rents.
The Burlington Woods campus consists of 288,953 square feet on 17.34 acres. It features a walking and jogging trail, which connects the property to the 200,000 square-foot Wayside Commons Lifestyle Center, and is surrounded by numerous other amenities including the Burlington Marriott Hotel, the Burlington Mall and Lahey Clinic.
Urdang Capital Management, Inc., a wholly-owned subsidiary of the Bank of New York Mellon Corporation, provides real estate investment management services to institutional investors. Griffith Properties invests in core and value-added office and R&D assets in the markets between Boston and Washington, DC.
GE Real Estate also closed two transactions with Urdang last year on office properties in the Atlanta market. "We had a great experience working with GE and would welcome the opportunity to utilize its financing solutions for future transactions,” said Vincent Sanfilippo, chief investment officer of Urdang Capital Management, Inc. “We are pleased with how this deal came together, despite the recent volatility in the debt market.”
“GE recognized the potential of this well-located property and was a collaborative, accommodating partner throughout the transaction process,” said J. Brad Griffith, president of Griffith Properties.
The three buildings are currently 92 percent occupied by 18 tenants representing a variety of industries. The leases of two significant tenants will expire at the end of 2007, providing the joint venture immediate upside potential given the rising rents in the Burlington submarket. In addition, in order to attract and retain a high quality tenant base, the joint venture partnership plans to spend approximately $1.5 million over the next three years improving the building's interior common areas as well as roofs and HVAC.
“Burlington Woods is a first-class property located directly off Route 128 with easy access and great visibility,” said David Cohen, regional director, Northeast for GE Real Estate’s North America Lending division. “This transaction allows us to increase our presence in the rapidly improving Boston market. We look forward to continued expansion of our presence in the region.”
Frank Petz of the Eastdil Secured - Boston office and Dan Finn of the CBRE l Melody Capital Markets - Boston office acted as mortgage bankers on the transaction.
GE Real Estate’s North America Lending division offers financing for retail, industrial, self-storage, multifamily, office, student housing, regional malls and outlet centers. North America Lending is also a provider of financing solutions for niche asset classes including affordable housing, golf, hospitality, vacation ownership, manufactured home communities and RV resorts.
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About GE Real Estate
GE Real Estate(
www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$72 billion in assets and a presence in 31 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (
www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$276 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.
