Dealmaker: JLL Provides $238 Million for Office, Multifamily
JLL Capital Markets provided nearly $148 million in acquisition funding for a suburban New Jersey office portfolio and $90 million in acquisition and renovation funding for multifamily properties in Pennsylvania and California.
JLL Capital Markets arranged $147.72 million in financing for a 10-property office portfolio totaling 1.5 million square feet in Morris County, N.J. JLL worked on behalf of the borrower, a joint venture between Onyx Equities, Taconic Capital Partners, Axonic Capital and Machine Investment Group, to secure the three-year, floating-rate loan provided by funds managed by the Real Estate Group of Ares Management Corp. Loan proceeds were used to acquire the portfolio from Mack-Cali. The sale transaction was represented by JLL’s Capital Markets team.
The portfolio consists of nine assets in Parsippany: 1, 3, 5 and 7 Sylvan Way; 4, 6 and 8 Campus Drive; 2 Hilton Court and 11 Dryden Way; and 1 Giralda Farms in Madison. Parsippany and Madison are located in Morris County, which is part of the northern New Jersey office market, which, with more than 152 million square feet, is the 17th largest office market in the United States. The area is home to numerous Fortune 500 companies and boasts a highly educated workforce as well as connectivity and proximity to Manhattan, 40 miles east. The portfolio is 84% leased overall to a diverse tenancy including national credit and local tenants.
The JLL Capital Markets team representing the borrower included Steven Klein, Christopher Peck, Michael Klein, Jose Cruz and Alex Staikos.
“The portfolio is extremely well-positioned to benefit from tenants seeking high-quality office space in a strong location,” Klein said.
JLL Capital Markets arranged $33 million in acquisition and renovation financing for the International House multi-housing property located at 3701 Chestnut St. in Philadelphia. JLL represented the borrower, CSC Coliving, LLC, to secure the loan with PostRoad Group.
International House sits on 1.33 acres, is 14 stories tall and consists of 10,016 square feet of occupied office space. CSC plans to convert the existing office space into apartments, with plans to renovate and update floors into 400 units. The second-floor office space will continue to be occupied through 2028 and the ground floor will be available to other office/retail tenants. The property is also perfectly positioned for additional 150,000 ground up development in the back portion without disrupting the existing building.
Located in University City, one of Philadelphia’s most dynamic locations and home to the University of Pennsylvania, International House is located near 5 million square feet of office space, providing more than 85,000 jobs to the area.
The JLL Capital Markets team representing the borrower was led by Senior Managing Director Chad Orcutt and Analyst Blaine Fleming.
JLL Capital Markets also $56.73 million for a four-multi-housing-property portfolio, ranging from 16 to 69 units and loan amounts ranging from $5.845 to $24.05 million, in Los Angeles County.
JLL worked on behalf of the Los Angeles-based private borrower to originate the 10-year, 2.29% fixed-rate Fannie Mae loan. The loan will be serviced by JLL Real Estate Capital LLC, a Fannie Mae DUS lender. The deal closed in less than a month.
The JLL Capital Markets team representing the borrower was led by Managing Director Marc Schillinger and Associates Keith Rosso and Eric Boucher.
