$19M Refi Obtained for US Airways HQ
By Amy Wolf Sorter, GlobeSt.com, August 16, 2009
TEMPE, AZ-WP Carey & Co. LLC has obtained $19 million to refinance its US Airways Group’s Corporate Headquarters. The floating-rate, non-recourse loan, provided by a regional bank, allows the New York City owner to retire maturing debt on the 225,000-square-foot, nine-story building.
Damien R. Wilson, managing partner with Dominion Realty Capital Inc. in New York City tells GlobeSt.com that arranging financing on the two-year-old building at 111 W. Rio Salado Pkwy. was somewhat difficult. But that wasn’t surprising, given the current climate, he notes.
“We’ve been able to establish relationships with regional, local lenders with strong balance sheets that are actively looking for deals like this, with strong borrowers and good assets,” Wilson remarks. He goes on to say that WP Carey as a sponsor was appealing to the lender. The lender also liked the location.
“That’s a strong area that attracts a lot of large office tenants, not to mention US Airways has been in Tempe for awhile and has strong ties to the area. The lender believes US Airways will be there for a long while,” Wilson says. The lender also believes that if US Airways ups and leaves, the asset is still attractive enough to lease up, Wilson adds.
The building was designed as a build-to-suit, single-tenant facility. It serves as US Airways’ global headquarters, and houses all of the company’s major corporate functions and executive offices.
Wilson says the deal is proof positive that capital is available from certain sources, provided there is a good story, such as an attractive asset, and a strong relationship. “This was a very strong, good deal in this market,” he adds. “It shows that with great relationships, it’s possible to source competitive, attractive financing.”