CBRE | Melody, the real estate investment banking division of CB Richard Ellis, today announced it has arranged $12.45 million in 10-year, fixed-rate financing for 3 Davol Square, on behalf of Davol Square Jewelry Mart LLC.
The loan, with “a national CMBS provider,” was secured by Frank Petz, managing director of CBRE | Melody’s Boston office, and senior analyst Deborah Dalton.
The new loan has a lower interest rate and yielded “significant additional proceeds [that] will provide funds for the owners of Davol Square to position the property’s two-acre parking lot for future development,” Petz said. “We structured the financing such that the development site was not part of the collateral for the new mortgage,” he noted, “allowing the owners greater flexibility as they work closely with the City of Providence to develop the vacant waterfront land adjacent to the building.”
The deal was described as a collaborative effort between the Boston office of CBRE | Melody and the Providence office of CBRE | New England, which has had a longstanding relationship with the property and its owners.
3 Davol Square, a 113,551-square-foot office complex in the heart of the Jewelry District, is more than 90-percent occupied. Built as a mill in 1875, for Davol Rubber Co., the property was renovated in 1982 and underwent significant capital improvements in 1992 and 2000.
CBRE | Melody, with offices in 35 metropolitan markets in North America, generated $17.8 billion in real estate financing in 2005. For more information, visit www.cbremelody.com.
