Newmark Arranges $350 Million Loan for 16-Property Suburban Office Portfolio

Rhea-AI Summary

Newmark has successfully arranged a $350 million floating rate loan for a portfolio of 16 suburban office assets across Nassau and Suffolk Counties in Long Island. The properties, totaling 2 million square feet, are primarily leased to tenants in the medical, finance, and law sectors, with a 89.3% occupancy rate. Managed by the WE'RE Group and partnered with Angelo Gordon, this financing aims to leverage the diverse cash flow and strong location of the assets. The loan was facilitated by Barclays and Citi, showcasing Newmark's expertise in structured finance.

Positive

• Successfully arranged $350 million loan for 16 suburban office properties.
• Portfolio is 89.3% leased, indicating strong tenant demand.
• Diversified tenant base reduces risk with no single tenant exceeding 18.2% of leased area.
• Strategically located near renowned hospitals, enhancing asset value.

Negative

• None.

NEW YORK, June 14, 2021 /PRNewswire/ -- Newmark, on behalf of Angelo Gordon and the WE'RE Group, has arranged a $350 million floating rate, securitized loan for the financing of 16 suburban office assets, spanning 2 million square feet across Long Island's Nassau and Suffolk Counties. The Newmark team was led by Dustin Stolly and Jordan Roeschlaub, Vice Chairmen and Co-Heads of the New York Debt & Structured Finance team. The Single Asset Single Borrower securitization was led by Barclays and Citi.

Consisting of both traditional and medical office, the portfolio is strategically located along the North Shore of Long Island, which contains some of Long Island's strongest submarkets. All assets are located within proximity to major arterials, with the Nassau County assets nearby multiple highly renowned hospitals. The well-occupied and diversified portfolio is currently 89.3% leased to various tenants in the medical, finance and law industries with no single tenant encompassing more than 18.2% of net rentable area.

Stolly commented, "By leveraging the high-quality rent roll and committed tenancy with this best-in-class sponsorship, we were able to achieve a successful execution for all parties involved."

Roeschlaub pointed out, "Angelo Gordon has acquired an attractive portfolio with diversified cash flow. We were able to leverage our deep SASB experience to provide an accretive financing solution for the portfolio."

Skillfully owned and operated by the WE'RE Group for nearly 50 years, Angelo Gordon entered the portfolio ownership structure in 2019, when the two groups formed a joint venture agreement including many assets within the WE'RE Groups existing portfolio. The partnership creates a unique ability to leverage both Angelo Gordon's institutional capabilities and the WE'RE Group's operational expertise in order to generate significant growth amongst all the portfolio's assets. 

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology, and industry expertise, we bring ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company's business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.

FAQ

What is the $350 million loan arranged by NMRK for?

The loan is for financing a portfolio of 16 suburban office properties in Long Island.

What is the occupancy rate of the properties financed by Newmark?

The properties have an occupancy rate of 89.3%.

Who partnered with Newmark for the loan arrangement?

Newmark partnered with Angelo Gordon and the WE'RE Group for the loan arrangement.

Which banks facilitated the $350 million loan for Newmark?

The loan was facilitated by Barclays and Citi.

What industries occupy the leased space in the Long Island office portfolio?

The leased space is primarily occupied by tenants in the medical, finance, and law industries.