Lender focused on transitional office assets increases sponsor’s original $48.7 million loan on West Midtown mixed-use project to larger maximum commitment
August 23, 2021 – Philadelphia – An affiliate of Rubenstein Mortgage Capital (“RMC”), a private mortgage lending platform focused on debt investments secured by U.S. transitional office assets, announced an amendment increase to an existing loan secured by 8West, a Class-A office and retail mixed-use development in the West Midtown submarket of Atlanta.
In 2019, RMC provided a $48.7 million senior construction loan commitment to the sponsor and 8West property owner, a joint venture between local developer The Atlantic Companies and investor Harvest Capital Group. The well-located property sits at 889 Howell Mill Road, bordering the Georgia Tech campus as well as surrounding the robust dining, shopping, residential, and entertainment district of Atlanta’s West Midtown area. Construction on the nine-story, 195,847-square-foot project, consisting of approximately 177,441 square feet of office and 18,406 square feet of retail, was completed in December 2020.
The increased commitment allows the sponsor to extinguish the existing mezzanine loan, add amenity spaces at the property and complete the leasing program at 8West. The property seeks to capitalize on the recent growth in the Midtown and West Midtown submarkets, which has attracted such tenants as Google, Microsoft and Facebook.
“We are most pleased to expand our relationship with Rubenstein by increasing our existing loan at 8West,” said Jim Meyer, Managing Partner and Co-Founder of The Atlantic Companies. “The additional commitment by RMC simplifies our capital stack and allows us to accelerate our aggressive leasing program in the vibrant West Midtown Atlanta submarket.”
The transaction was originated by Taylor Smith, Rubenstein Partners’ Regional Director of the Southeast, and Ashesh Parikh at RMC, the debt investment platform headed by Fred Harmeyer at Rubenstein Partners, L.P. (collectively, with its affiliates “Rubenstein”), a vertically-integrated real estate investment advisor focused on value-add office property equity and debt investments. The RMC platform has fully discretionary investment capital and targets non-recourse first mortgage loans of $25 to $100+ million in markets throughout the country with a focus on office properties in need of debt capital for acquisition, repositioning or for ground-up construction.
“RMC’s modified investment in the 8West project reflects our willingness to continue to lend on well-sponsored projects in markets with strong fundamentals and growth prospects,” noted Parikh. “Our familiarity and experience in the Atlanta market also served us well with this transaction and we’re pleased to re-affirm our support of the Atlantic Companies’ long-term vision for the property.”
Rubenstein has a strong presence in the Atlanta Metro market through their regional equity investment activities, which include ownership of Sanctuary Park in Alpharetta, Pennant Park in Northwest Atlanta and Uptown Atlanta.
About Rubenstein Mortgage Capital RMC is the investment platform of Rubenstein Partners focused on mortgage lending, debt investments, and capital markets activity. RMC provides fully discretionary balance sheet lending solutions for transitional office investors and office project developers seeking non-recourse first mortgage financing up to 80% of the capital structure. RMC provides flexible loan terms, directly originates new loans, and asset manages all its investments.
About Rubenstein Partners Rubenstein Partners, L.P. founded in September 2005, is a private real estate investment advisory firm with operations throughout the United States. The firm is led by its founder, David Rubenstein, and a group of senior real estate executives, and is focused on directing and managing office real estate investments in the U.S. Rubenstein Partners’ predecessor company, The Rubenstein Company, LP and affiliates, founded in 1969, was one of the largest private owner operators of Class A office real estate in the Mid-Atlantic, owning and operating a portfolio of assets valued at approximately $1.2 billion at the time of its disposition in 2004. Since 2005, Rubenstein Partners has, on behalf of its investors and clients, invested in more than 22.5 million square feet of office real estate assets throughout the United States. For more information, visit www.rubensteinpartners.com.
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