Procacci Development Corporation, leader in the creation of buildings constructed to resist Category 5 Hurricane-force winds and maximize energy efficiency, has secured $87 million in financial vehicles designed to improve its debt structure and provide financing for new acquisition and development opportunities.
The vehicles include a refinancing for $73.15 million of existing loans and a $14.5 million revolving credit line. The loan covered five buildings in Miami and Plantation, Florida, totaling roughly 436,000 square feet of Class A office space.
“Continued expansion in the current economy mandates that we improve our financial position with our debt structure and position ourselves to have the resources on hand to capitalize on opportunities as they emerge,” said Philip J. Procacci, founder and CEO. “With the refinancing and credit line, we have the capital and liquidity to put us in a strong and nimble position if or when new acquisitions and developments present themselves.”
Four of the five buildings are at Crossroads at Dolphin Commerce Center in Miami: the Keiser University building and adjoining 135,000-square-foot parking garage, two multi-tenant office buildings, and a building developed for the Federal Government. The fifth facility, the ACES Building in Plantation, is a former Levitz Furniture showroom redeveloped for the Federal Government.
The loan is a five-year note with a five-year extension option. Wells Fargo handled the refinancing, marking the continuation of a long-standing relationship Procacci has enjoyed with the financial services provider. Previous lenders were Wells Fargo and GE Capital.
“This loan gives us the flexibility to reassess where we are in five years,” said Procacci, who still has 14.5 acres ready for development at Crossroads, which front Florida’s Turnpike. “It gives us the agility to substitute or add properties or shift the portfolio around as market conditions or new opportunities unfold.”
This is the second refinancing Procacci secured in July. The developer refinanced $17.5 million in debt related to four development projects for the U.S. General Services Administration in Florida and Tennessee, which also involved securing a $15 million revolving line of credit. All of the properties are leased to federal agencies under long-term leases.
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