Hunt Real Estate Capital announced that it refinanced a Class-A, suburban office property located in Hilliard, Ohio. The total Hunt Real Estate Capital investment is $17 million. The transaction was originated by MSF Real Estate Capital, Inc., a Columbus, Ohio mortgage banking firm. MSF represented the borrower and Scott Moore, Senior Vice President, spearheaded the placement of the transaction with Hunt.
One Mill Run is a LEED Certified Silver nine-story mid-rise office property that contains 174,323 square feet of rentable area. The property was constructed in 1989 and is 95% leased. The site area is 9.74 acres or 424,274 square feet.
The owner is a Canadian investor with a penchant for real estate in the U.S. IMC Real Estate Management, headed by investor Tom Marmaros, has been a long-term investor in prominent Columbus office buildings over the years.
“Since purchasing One Mill Run in August 2014, the owner has reinvested approximately $2.5 million in the property by implementing capital and tenant improvements,” noted Gregory Cazel, Managing Director at Hunt Real Estate Capital. “A significant number of leases have been executed or renewed within the past two years and minimal rollover is expected in the near term.”
Over the past two years, the borrower implemented a number of capital improvements, including: resurfacing of the main parking lot; upgrades to the ADA Ramps, LEED, security cameras, and HVAC system; replacement of pavers at the west entrance; common area carpeting replaced; and nearly every tenant space has been renovated through a tenant improvement allowance.
Hilliard is a western Columbus suburb and the property benefits from excellent visibility from Interstate 270.
The key metro area and submarket trends, construction outlook, and the performance of competing properties indicates a positive impact on the property’s performance in the near-term. The subject has been significantly outperforming other properties and no new construction is coming online in the immediate future.
“One Mill Run is considered to be a top asset in the submarket and all eight tenants are signed to net lease terms with the majority of the tenants leases extend through 2022 or beyond,” added Cazel. “We were pleased to provide this financing for a quality commercial real estate investor.”