Churchill Commercial Capital, Inc. has arranged a $36.50 million first mortgage and $4 million mezzanine loan secured by the 100 percent leased North Pointe Business Park Buildings C, D and E in American Fork, Utah. In addition to the debt, replacement equity for the ownership was arranged by Churchill. The loans were funded by a major investment bank and separate hedge fund for North Pointe Buildings, LLC, paying off existing lenders in full.
The sponsor Robinson Brothers Construction developed the 5 building, 344,250 square foot North Pointe Business Park. They originally came to Churchill to refinance Building C, a single, 78,350 square foot, 88 percent leased, dual tenant Class A office building. This dual tenant building became single tenant within months, as one of the occupants gave notice to vacate. With a rapidly approaching loan maturity, Churchill secured an extension of the bank loan. Churchill then recommended adding to the loan the adjacent 75,500 square foot similar property, Building D, in order to increase overall
Over the ensuing months, Coldwell Banker Commercial chose to relocate their Utah County office into the just vacated North Pointe space. Through expansions and new leases, Coldwell’s highly successful team of Brandon Fugal and Jordan Wall leased the Class A North Pointe Business Park to 100 percent occupancy by mid-2014. The business park’s success is attributed to the high quality, functional design and construction of the buildings, geared to corporate users who desire this key location with excellent access to Interstate 15 and attractive mountain views.
New joint venture equity was required to refinance construction debt on Building D and the separate bank loan on Building C. After evaluating offers from the institutional equity market, the Robinsons chose to fund the new equity from private investors already partners in North Pointe Building E, a 96,610 SF LEED Certified building which was completing construction. Bringing in these equity partners allowed Building E, fully leased to Henry Schein, to be added to the portfolio, significantly strengthening the credit and risk profile of the loan.
The two lenders refinanced three separate bank loans, including a construction loan on a building whose certificate of occupancy was issued within two weeks of closing. The 10-year loan features a mezzanine component with significant prepayment flexibility.
About Churchill’s role in this refinance, Mark Robinson, President of Robinson Brothers
Construction said, “We just closed a $40.5 million loan that I know would not have happened without Churchill. Never in my 25 year experience have I met an organization that did all the work necessary to simply ‘Make It Happen.’”