Metropolitan Realty Associates refinances Sunrise Businesss Center for $35 million

Metropolitan Realty Associates (MRA) refinanced Sunrise Business Center, with a $35 million loan from Bank of America. Putting in place the low-leverage debt culminates Metropolitan's five-year transformation of the currently 96% leased, four building, 388,500 s/f business park at 3500 Sunrise Hwy. that it purchased in September 2006 with long-time equity partner, Angelo, Gordon & Co. LP. With no prepayment penalty, the debt arrangement will enable the owner to move quickly if it decides to sell the asset in the future. "Conservative, low leverage debt is a trademark of my business model," said Joseph Farkas, president of MRA, which is based in Jericho. "Conservative debt allows for the greatest market flexibility and continually preserves our partnership equity investment as we develop and lease our projects or prepare to monetize an asset." Evan Pariser, managing director in the New York office of Holliday Fenoglio Fowler, arranged the financing. Within two years of acquiring Sunrise Business Center in 2006, Metropolitan brought occupancy in the 100 Building and 200 Building to 97%. Ownership razed a third structure and in June 2009 completed construction of the new 300 Building, a two-story, 161,000 s/f class A office building, which is now 100% occupied. Metropolitan coordinated its repositioning plan for Sunrise Business Center with the Town of Islip Industrial Development Agency, implementing a 15-year, payment in lieu of tax (PILOT) program designed to entice tenants to the property and preserve local jobs. The program has been a tremendous success, maintaining and creating 2,500 jobs at Sunrise Business Center. Sunrise Business Center provides tenants with flexible, energy-efficient office space, quality finishes and amenities.