Virtua Partners completes USD41 million refinancing and recapitalisation of Met Center 15 office property in Austin, Texas
Virtua Partners has competed the refinancing of Met Center 15, a 257,600 square foot office and flex commercial project in Austin, Texas.
The refinancing was made possible through the recent renewal of a key lease facilitated by the efforts of Clear Vista Management, a Virtua Partners affiliate. The refinancing enabled the project to reduce carrying costs by taking advantage of current interest rates and retiring unsecured debt and preferred equity.
Met Center 15 is currently a 100 per cent leased and stabilised property occupied by corporate tenants that boast strong credit profiles. The property is located south of the Austin Central Business District, near the Austin-Bergstrom International Airport.
“Of all of our recapitalisation and refinancing efforts, this project really shows what our team is capable of, and shows what an integrated group can achieve by sticking to a strategy and executing,” says Derek Uldricks, President of Virtua Capital Management. “The big picture here is really our ability to uncover value and expertly navigate complex deals on behalf of our investors.”
Through the refinance, two classes of preferred equity will be retired in their entirety. Class 1 investors realised a 15 per cent internal rate of return while Class 2 investors realised a 30 per cent internal rate of return. Both common and preferred investors were given the opportunity to exit. The firm anticipates the refinancing and recapitalisation also will allow future distributions to common equity investors.
“We’re proud of our team’s accomplishment, which has not only provided a strong return for our investors but allowed us to take advantage of today’s low-interest rates, reduce carrying costs and stabilise what we believe is a very attractive property,” says Quinn Palomino, co-founder and CEO of Virtua Partners. “This is just one example of how we strive to deliver value for our investors through technically-sound solutions.”