NGKF Capital Markets has closed on the last piece of $20 million in first-mortgage financing for the acquisition of three parking structures in Cincinnati.
Minneapolis-based TCF Bank provided a $2.9 million loan for the purchase of the 890-stall parking garage at 605 Plum Sreet. The deal follows the October closing of a $17.7 million first mortgage for the 680-stall 609 Elm Street—which is contiguous to the Plum Street garage—and the 749-stall 36 East 7th Street. The first loan was provided by Galveston, Texas-based life insurer American National Insurance Company (ANICO).
“The deal allowed the buyer, a nationwide institutional parking owner, to enter into the Cincinnati market with a critical mass of over 2,300 parking stalls,” said NGKF Senior Managing Director Ben Greazel, who arranged the financing. “Urban parking structures are one of the most sought after asset classes right now, both on the acquisition and financing sides. The available capital is priced very competitively, and borrowers can get 10-year, fixed-rate loans for between 3.75% and 4.25%.”
605 Plum Street was priced for seven years at LIBOR plus 245 basis points, while 609 Elm Street and 36 East 7th Street were priced for seven years with a 25-year amortization schedule at a fixed 4.125%.
The undisclosed buyer, which owns parking structures in most major U.S. markets, plans to upgrade the facilities to maximize revenue, added Mr. Greazel.
