Main Office
132 Old Post Road
Southport, CT 06890
Phone: 203-255-1700
Fax: 203-259-3030
Mid Atlantic Office
511 W. Beechtree Lane
Wayne, PA 19087
Phone: 610-293-1976
Fax: 610-293-7617
Transaction History
Gateway Center
Downtown Providence, RI.
On August 2, we closed on the acquisition of Gateway Center in Downtown Providence, RI. Edgewood partnered with Parkwood Real Estate Partners and Commonwealth Ventures and acquired a 135,110 sq.ft. building that is comprised of 113,609 sq.ft. of Class A office space and a 150 car parking garage. The purchase price was $20 million. Ascribing a $25,000 value per parking space, our cost per sq. ft. of office is $143.
The property is net leased to Fidelity Investments for three years with an option to extend for another three years. As part of the lease agreement, Fidelity agreed to invest $13.9 million into the building, $8.7 was put into tenant and base building improvements and $5.2 million was put into furniture, fixtures and equipment. Edgewood will contribute $625,000 and will own 25% of the equity.
The property was purchased from the Rhode Island pension fund, which foreclosed on the building prior to Fidelity signing the current lease. Wachovia provided $18.8 million to finance our acquisition. The loan was structured with an $800,000 T.I reserve and a cash flow sweep until the reserve totals $2.5 million. As a result there will not be any available cash flow until Fidelity extends or the building is leased to a new tenant.