NEW YORK–(BUSINESS WIRE)–July 11, 2003–Shorenstein Company, one of the leading private owner/operators of major office buildings throughout the United States, has purchased a $20 million juniormezzanine loan from CDC Mortgage Capital Inc., a New York-based lender.
The junior mezzanine loan was originated by CDC in late 2002 as a portion of a refinancing of two Manhattan office buildings: 350 Madison Avenue, a 382,969 square foot office building with street level retail; and 1440 Broadway, a 748,032 square foot office building at 40th and Broadway. Both buildings were recently extensively renovated by Max Capital Management Corp. and are currently owned by a joint venture of Max Capital Management Corp. and The Landis Group.
This is the first investment by Shorenstein Company in a mezzanine loan. Shorenstein purchased the loan on behalf of its sixth investment fund, a private commingled fund formed in 2001 to make equity and debt investments in Class A office buildings located throughout the United States. This fund has previously made investments in U.S. Bank Plaza in Sacramento, 500 West Monroe in Chicago, Two Liberty Place in Philadelphia, and 450 Lexington Avenue in New York. The fund is capitalized with $609 million of equity and is currently more than 50% invested.
Commenting on the junior mezzanine loan purchase, Douglas Shorenstein, Chairman and CEO of Shorenstein Company, said: “This opportunity to participate as a junior lender in the capital structure of prime Manhattan office real estate is a natural extension of our traditional role as an equity owner. We will consider similar future investments on a selective basis.”
Shorenstein Company currently owns and operates over 22 million square feet of prime commercial office space throughout the United States. During the past decade Shorenstein has sponsored a series of closed-end investment funds. Since 1992 these funds have acquired and developed more than 16 million square feet at a gross acquisition/development cost in excess of $2.8 billion.
About Shorenstein Company:
Shorenstein Company (www.shorenstein.com) is a premier private owner and operator of Class A office buildings in the United States with a portfolio of more than 22 million square feet. The company is engaged in all aspects of office building investment, development, financing, leasing, construction, and management.
Since 1992, Shorenstein has sponsored a series of closed-end investment funds that have invested in Class A office projects located throughout the United States. Investors in these funds have included prominent foundations, endowments, pension funds and high net worth individuals. As the manager of these funds, Shorenstein has delivered exceptional risk-adjusted returns to investors by employing a disciplined value-added strategy.
