A joint venture purchased seven office buildings in Dover’s Silver Lake office park from CD Realty Advisors, Inc. for $30 million.
Moshe Mendlowitz of the Goldstone Group, Mark and Chesky Frankel of Lakestar, and west coast philanthropist Shlomo Rechnitz teamed up for the purchase. Shaya Ackerman of Eastern Union Funding, arranged a $21,750,000 loan from Ladder Capital that closed Thursday, April 10.
Representing the buyer and seller were Mike Margolis, David Dolan, Brett Segal, Joe Sklencar and Neal Dangello from Newmark Grubb Knight Frank.
The loan is locked in for three years of interest-only on a 10-year term, with a 30-year amortization schedule. Located at 800-861 Silver Lake Blvd., the office park is occupied by the largest concentration of government tenants in Dover.
“Government leases have built into them an out-clause allowing them to break the lease at any time, which from a financing standpoint is a huge risk,” Ackerman said. “We worked in tandem with Ladder Capital to minimize that risk for everyone involved and the final product was a non-recourse loan backed by a tremendous asset.”
At the same time, Delaware state government has not embarked on a construction program in Dover that would allow it to vacate space.
Silver lake has room for more than two dozen buildings containing 27,000 to 30,000 square feet. Eight buildings have been constructed.
