Griffin Announces Closing on Mortgage Loan

Rhea-AI Summary

Griffin Industrial Realty (NASDAQ: GRIF) has secured a $5.1 million nonrecourse mortgage loan for a fully-leased industrial property in Orlando, Florida. The mortgage, backed by Webster Bank, has a ten-year term with principal payments amortized over 25 years and a variable interest rate linked to the one-month LIBOR plus 2.56%. To stabilize costs, Griffin entered an interest rate swap, fixing the rate at 3.50% for the loan duration. Proceeds from the mortgage primarily address previous borrowings used for the property acquisition.

Positive

• Secured a $5.1 million nonrecourse mortgage loan.
• Interest rate fixed at 3.50% for better financial predictability.
• Use of loan proceeds to manage existing debt improves financial stability.

Negative

• None.

NEW YORK, July 06, 2020 (GLOBE NEWSWIRE) -- Griffin Industrial Realty, Inc. (NASDAQ: GRIF) (“Griffin”) announced that Riverbend Orlando Holdings III, LLC (“Borrower”), a wholly owned subsidiary of Griffin, entered into a $5.1 million nonrecourse mortgage loan (the “Mortgage Loan”) on the approximately 108,000 square foot fully-leased industrial/warehouse building in Orlando, Florida that the Borrower acquired in February 2020 (such acquired property, the “Property”). The Mortgage Loan, evidenced by a Promissory Note issued by the Borrower to Webster Bank, National Association (“Webster Bank”), has a ten-year term with principal payments based on a twenty-five-year amortization schedule and a variable interest rate based on the one-month LIBOR rate plus 2.56%. Upon closing the Mortgage Loan, the Borrower entered into an interest rate swap agreement with Webster Bank that effectively fixes the interest rate on the Mortgage Loan at 3.50% for the entire loan term. $4.1 million of the proceeds from the Mortgage Loan were used to repay Webster Bank for the borrowing under Griffin’s line of credit for acquisitions that was used to finance a portion of the Property’s purchase price.

CONTACT:
Anthony Galici
Chief Financial Officer
(860) 286-1307

FAQ

What is the amount of the mortgage loan secured by Griffin Industrial Realty?

Griffin Industrial Realty secured a $5.1 million nonrecourse mortgage loan.

What is the interest rate on Griffin's mortgage loan?

The interest rate on Griffin's mortgage loan is fixed at 3.50% for the entire loan term.

What was the purpose of the proceeds from the mortgage loan for Griffin?

The proceeds from the mortgage loan were primarily used to repay existing borrowings under Griffin's line of credit.

What type of property did Griffin acquire in Orlando?

Griffin acquired a fully-leased industrial/warehouse building in Orlando, Florida.

Who is the lender for Griffin's mortgage loan?

Webster Bank is the lender for Griffin's mortgage loan.