National lending platform provides first mortgage acquisition loan for recently-constructed, well-leased Class-A office building
Rubenstein Mortgage Capital (including its affiliates, “RMC”), a private mortgage lending platform focused on debt investments secured by U.S. transitional office assets, announced that it originated a $62 million first mortgage loan for the acquisition of 3400 at CityLine, a 5-story, 312,345 square-foot, premier Class-A office building built in 2018, located in the Richardson submarket of Dallas, TX.
RMC provided the borrower, an affiliate of Zeller Realty Group (“Zeller”), with an initial funding of $57 million at closing and up to approximately $5 million of additional funding for future leasing costs. Zeller is a privately held commercial real estate investment and development firm headquartered in Chicago, IL. The transaction was originated by Andrew Murray, SVP of Debt Originations at RMC.
“3400 at CityLine is an attractive core+ acquisition financing for RMC,” notes Murray. “The CityLine submarket of Richardson, TX is a premier location, and 3400 at CityLine offers the highest quality office facilities in the Richardson submarket of North Dallas.”
Originally built in 2018, 3400 at CityLine is a 5-story office building with 1,400 parking spaces in an attached 4-story parking garage plus surface parking. The building amenities include a newly designed conference center and lounge, a fully equipped fitness center, and an outdoor entertainment area. The property is currently 83% leased with a weighted average lease term of approximately 8.7 years.
The CityLine submarket is a premier location within Richardson. The property has excellent access, signage visibility, and proximity to HW 75 and George Bush Highway. The CityLine submarket is well positioned for future office tenant demand, benefitting from the newly developed retail and luxury multi-family facilities surrounding the new State Farm Headquarters development, and from the completion of the new CityLine Rail Station. RMC provided financing to Zeller within a tight timeframe, demonstrating RMC’s ability to fund with speed and certainty of execution in a difficult capital markets environment.