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    Franklin Realty Advisors: 333 Southwest Cutoff Mortgage Placement

    When Wellesley-based Franklin Realty Advisors sought to purchase a 29,000 square-foot medical and office building at 333 Southwest Cutoff in Northborough, Kelleher & Sadowsky was tapped to orchestrate the transaction, including placing the mortgage favorably with a local bank.
    Location. Location. Location.

    333 Southwest Cutoff is located across the street from one of the two entrances to the open-air shopping center Northborough Crossing, and adjacent to New England Baseball Complex.

    The highly desirable location of the property close to retail shopping and entertainment provides both convenience and high visibility for companies looking to attract well-heeled MetroWest customers to its doors.

    UMass Memorial Medical Group’s ophthalmology department occupies almost two-thirds of the building. Also located inside of it is a CareWell Urgent Care, which works with UMass Memorial Health, the Worcester-based parent organization of the medical group.

    Finding Desirable Financing Terms in a Challenging Commercial Lending Environment

    Amid the headwinds of rapidly increasing interest rates, untamed inflation and abundant go-political risk, the Kelleher & Sadowsky Capital Markets team was tasked with the assignment to secure bank financing.

    For this engagement we actively sought out proposals from a handful of area banks who we knew remained active lenders in the commercial real estate market, despite the challenging lending environment.

    After narrowing the potential banking partner down to three finalists, we were able to obtain very favorable terms, including:

    • Long Amortization (decreasing the annual debt service paid)
    • Maximum Leverage (allowing for a lower equity basis)
    • Flexible Pre-Payment Terms (allowing a refinance when rates are lowered again)
    • A Very Competitive Fixed Rate(by creating competition among banks for the loan and identifying banks pricing off a lower internal cost of funds)

    Our ability to seek and secure desirable financing terms translated into strong Cash Flow and Return on Investment projections that helped the buyer attract additional private investment.

    Key to the success of this mortgage placement engagement was our knowledge of the local banking market and ability to identify leverage points to negotiate good loan terms on behalf of the buyer.