McKinley Executes Long Term Refinancing of McKinley Towne CentreFebruary 26, 2016
McKinley most recently announced two major lease transactions at McKinley Towne Centre which backfill the entire space currently occupied by Google. The leases were completed many months ahead of schedule and well in advance of Google’s move out on April 30th. As quickly as McKinley leased up 85,000 sf of premier office space in Downtown Ann Arbor, it has now closed a very favorable long term refinancing of the property. The long term refinancing, provided by The PrivateBank on very favorable terms, will allow continued investment in the building.
"This was always our plan," offered Kenneth P. Polsinelli, McKinley's Chief Real Estate Officer. "We have worked very hard to attract world class companies like TD Ameritrade and LLamasoft, and these lease transactions now allow us to position this core property for the long term with an extraordinary refinancing provided by our very good friends at The PrivateBank. This financing represents the 25th loan, and over $300 million in total financing, with The PrivateBank over the last several years.”
McKinley Towne Centre is a mixed use development offering 105,000 square feet of Class A, high-tech office space and 20,000 square feet of retail space at the nexus of the University of Michigan and downtown Ann Arbor. LLamasoft will occupy almost 60,000 square feet at McKinley Towne Centre including the entire second and third floors, and TD Ameritrade will occupy almost 25,000 square feet which is the entire fifth floor. Beginning May 1, LLamasoft and TD Ameritrade will join downtown’s growing tech community in the blocks stretching from the University of Michigan’s Diag down East Liberty Street to South Division. Together, companies such as Menlo Innovations, Barracuda Networks and PRIME Research employ hundreds in that area.
"McKinley is one of the premier real estate companies throughout the Midwestern and Southeastern United States and we are very fortunate to have enjoyed such a long-term, successful relationship," offered Steve Anderson, Managing Director, Commercial Real Estate, The PrivateBank. "We are excited to further deepen the relationship with the financing of this trophy asset in Downtown Ann Arbor," Anderson further added.
"This is a very unique asset and we were able to move very quickly once we finalized the leasing effort," said Jim Willett, McKinley's Corporate Treasurer and Vice President of Finance. "We have secured exactly what we needed via this very favorable bank financing and have positioned this asset for the long term," Willett added.