Terra refinances Bay Harbor Islands office with $183.8M Monroe loan

Terra has refinanced the Well, its Bay Harbor Islands, Florida, office building, with a $183.8 million loan from Monroe Capital, retiring a $238 million loan from Eldridge Capital Management and Hudson Bay.

The building is a four-story, 96,000-square-foot Class A property that was delivered over the summer and is more than 90 percent leased, Connect CRE reports. The new loan leaves the property with $54.2 million less debt than the one it replaced.

Lone Star Funds closed a $110 million floating-rate, interest-only refinancing on 731 Class A rental units in Stafford, Texas, built in 2019 and 2020. TPG Real Estate Credit made the loan and Walker & Dunlop arranged it.

Northmarq's Minneapolis team placed a $50 million refinancing for a 235-unit Bloomington, Minnesota apartment building completed in 2024 with a life insurance company, while the building finishes lease-up. At the smaller end, Lake Forest Bank lent Sitex $39.4 million against a Queens industrial outdoor storage site, backed by a 20-year New York City Fire Department lease signed in 2023.

Commercial Observer's column this week argued that commercial real estate's refinancing pressure is an equity problem rather than a debt crisis. Occupied, revenue-generating assets are failing refinancing tests because income has not kept pace with a higher cost of capital, according to the column. Terra's lower loan amount fits that description.

Trepp's equal-weighted apartment price index fell 2.56 percent year over year in the second quarter, and the value-weighted index is down 17.8 percent since June 2022.