Citi, Bank of America Provide $99M CMBS Recap on Boca Raton Office Portfolio – Commercial Observer

An investment company, including owners and developers TJAC development has secured $ 99 million in commercial mortgage-backed securities (CMBS) from Citigroup and Bank of America Commercial Observer has learned that it is preparing to recapitalize a portfolio of four mixed-use office properties in Boca Raton, Florida. An undisclosed foreign stock offerer was also involved in the financing.

The five-year interest-free loan made it easy for Boca’s to merge City National Bank Plaza, Fountain center, The boardwalk on 18th Street and Grove Centerwhich together comprise nearly two dozen office and retail buildings in prime locations in Palm Beach County.

TJAC operated under a unit called Titan General Partnersof which it is an investor, sources said. And Kaskel the law firm Sachs Sax Caplan represented Titan in the deal.

Meridian Capital Group‘s Israel Schubert, Noam Kaminetzky and Scott Forbes arranged the financing on behalf of the borrower for the property, one of which is located in a building in the large company’s Boca Raton regional office 7700 West Camino Real.

“Despite the multiple challenges we faced in negotiating and completing loans, including the complexities associated with a CMBS deal involving multiple participants, overseas equity investors and government bonds prior to closing, [we] helped bring this loan across the finish line successfully, ”said Kaminetzky in a statement. Meridian had a long history with TJAC as it was involved in facilitating the pre-financing of some of the assets in the portfolio.

This recapitalization began before the pandemic outbreak in late winter 2020, before “financial markets stalled,” said Kaminetzky, adding that his team had put in place a structure for the parties involved to “continue the joint venture, while the COVID- Reduced risks for the credit group. This was a team effort of epic proportions and was undertaken in a Herculean manner by everyone involved. “

TJAC, a subsidiary of the developer The triad group, has compiled the properties through a series of acquisitions in 2012 starting in 2016, and upgrading them by building additional buildings, interior and exterior renovations of existing buildings at each location, including roof, landscaping, signage, electrical and plumbing upgrades as well as the renewal of the surface, redesigned from parking lots.

The Fountains Center is approximately 15 acres in 7000-7700 West Camino Real According to the TJAC website, there are seven mixed-use office buildings with more than 185,000 square feet of rentable space that were constructed between 1978 and 1988. TJAC bought the office park for $ 16 million in February 2012 when utilization was around 47 percent, and by September it had improved to 80 percent after a round of investment, according to a report published by Boca News Now on TJAC’s website.

The boardwalk on 18th Street in Boca Raton. Courtesy of Meridian

The boardwalk on 18th Street is a seven-building boardwalk mixed-use development 6909 Southwest 18th Street this includes about 108,000 rentable square meters for offices, Retail or restaurant usage as per TJAC’s website. It rests on and overlooks a 21 acre lake that is connected to a canal inlet.

City National Bank Plaza – at 7000 West Palmetto Park Road – was built in 1986 and has three buildings lies on more than 7 hectares. It includes an office complex of around 132,600 square meters, a 10,010 square meter retail property that houses one Starbucks and one 4,120 square feet MC Donalds Outpost. TJAC bought the property for $ 37.6 million in August 2016 supported by a $ 31.5 million loan from Bank Leumi, according to a report by South Florida Business Journal.

TJAC is said to have submitted plans in spring 2019 Build a fourth building on the property, which stands on four floors and would offer around 30,000 square feet of retail space at street level and 381 parking spaces at the upper level, according to a report by SFBJ.

Built 1983, Grove Center at 21301 Powerline Road is a 53,000 square foot, fOur one-story office building, which sits on 3.5 acres with 261 parking spaces, as per online property and listing information on CommercialCafe. TJAC bought the property for $ 11.5 million At the beginning of 2016 from SF Partners from Miami.

In total, the properties comprise around 514,500 square meters of office space, including medical and retail space, and will include corporate office tenants such as Meridian, City National Bank, Truist (BB & T. and SunTrust Bank) and Citibankas well as clinical laboratory Quest diagnosis. The sales area currently houses space for Dunkin donuts, MC Donalds, Einstein bagels and Starbucks. The list of tenants also includes legal and medical practices, auditors, financial services companies, and other food and beverage offerings.

Comments are closed.