CRONHEIM MORTGAGE ARRANGES ACQUISITION AND FINANCING

FOR CLASS A OFFICE IN HARRISBURG, PENNSYLVANIA

 

HARRISBURG, PA – David Cronheim Mortgage Corporation has arranged for the $32,5000,000 sale of Market Square Plaza, an 18-story Class A office building behalf of the seller, Market Square Plaza LLC. Contemporaneously, David Turley of Cronheim Mortgage arranged acquisition financing of $27,200,000 on behalf of the buyer of Market Square Plaza.  The loan carries a 10-year term to amortize over 30 years following a 3-year interest-only period.  The interest rate of 5.01% was locked at 103 basis points over the 10-Year US Treasury of 3.98%.  The loan represents a loan-to-cost of 83.7%.

 

Market Square Plaza is a 240,000± square foot, 18-story, Class A office building with 170,000± square feet of rentable space.  The property also houses an 8-story parking garage, located on floors three through ten, with 368 spaces reserved for tenants of the building.  The office levels, located on floors 11 through 18, are leased to a variety of regional and national law firms, the Secret Service and the State Department of Banking.  The first floor features retail space including Max’s Restaurant, Mid Penn Bank, and Capitol Copier Service, while the second floor is fully leased to the Hilton Harrisburg & Towers, a 340-room hotel located adjacent to the property, to be used as additional conference, banquet, reception, and classroom space.

 

Market Square Plaza is located at 17 North 2nd Street, between Walnut Street and Strawberry Street, in the historic downtown Central Business District, just two blocks from the State Capitol Complex.  The Subject is connected via several enclosed corridors to many of Harrisburg’s top attractions including the Hilton Harrisburg & Towers Hotel, Whitaker Center for Science and the Arts, Walnut Street Garage, Walnut Place Office Tower, and Strawberry Square, a 1.4 million square foot of office and retail complex that overlooks the Capitol.  The property also benefits from its close proximity to the area’s elite highway transportation network, including Interstates 83, 81, and 76 (the Pennsylvania Turnpike).  Harrisburg boasts a very strong office market, with vacancy amongst Class A space below 5%.