Los Angeles, CA - January 17, 2012 — Normandy Real Estate Partners, one of the largest real estate developers, owners and operators of commercial office buildings nationally, today announced the completion of a $355 million recapitalization of 10 Universal City Plaza (10 UCP) through a newly formed joint venture with Morgan Stanley Real Estate Investing (MSREI). The recapitalization includes the refinancing of $294.5 million of existing debt with a combination of new third party debt and joint venture equity from Normandy and MSREI. The completion of the recapitalization follows Normandy’s earlier announcement of the renewal and expansion of a 427,000 square foot lease with the building’s anchor tenant, NBCUniversal, for a twelve-year term. Normandy will retain a majority equity ownership interest in 10 UCP and will continue to manage the property on behalf of the joint venture partnership. The new $200 million senior loan obtained by the partnership was co-originated by Citigroup Global Markets, Inc. and JP Morgan Chase Bank, N.A.

 

“We’re delighted to partner with Morgan Stanley Real Estate Investing on one of Normandy’s most significant assets -- 10 Universal City Plaza.  Following closely on our renewal of the long-term lease with the building’s largest tenant, NBCUniversal, our partnership with MSREI and this recapitalization solidify our ongoing commitment to delivering unparalleled value and service for the tenants of 10 UCP,” said Jeffrey Gronning, Managing Principal, Normandy Real Estate Partners. “It has been a pleasure to collaborate with the MSREI team to secure a capital structure for 10 UCP from which we can continue the positive leasing momentum at the property.”

 

Eastdil Secured represented Normandy in connection with the recapitalization transaction.

 

Located in the heart of the San Fernando Valley, 10 Universal City Plaza is a landmark 36-story, Class A office tower that encompasses a total of 774,240 square feet on approximately 5.85 acres. At 506 feet, 10 Universal City Plaza is the tallest building in the San Fernando Valley, and the building’s striking exterior of imported Italian polished granite and solar green reflective glass has made it a key architectural feature of the Valley cityscape. The two beautifully finished main lobbies also feature extensive use of granite throughout. There are currently five contiguous floors available for lease at the top of the building, which offer unparalleled 360 degree views of the surrounding area.

 

Conveniently situated at the corner of Lankershim Boulevard and Universal Hollywood Drive within the Universal City / Burbank Media District submarket of Los Angeles – the building stands at the heart of the entertainment industry. 10 Universal City Plaza is easily accessible from all parts of the Greater Los Angeles area and offers convenient access to the area’s major thoroughfares – Freeways 101, 134, 5 and Highway 170 as well as the Burbank-Glendale-Pasadena Airport.

 

Normandy Real Estate Partners is a vertically-integrated real estate private equity fund manager headquartered in Morristown, NJ with offices in Boston, New York City, Los Angeles and Washington DC. Normandy currently manages a series of discretionary real estate funds totaling approximately $1.0 billion of equity commitments. Normandy’s existing portfolio includes over 15 million square feet of commercial assets, four hotels and numerous land development sites. Normandy targets value added real estate investments  in the gateway  markets of Boston, Metro New York City, Los Angeles, San Francisco, and  Washington, D.C. where opportunities exist to enhance value through creative repositioning, financial restructuring, intensive management, and capital improvements. For more information visit www.normandyrealty.com.

 

Morgan Stanley Real Estate Investing (MSREI) is the global real estate investment arm of Morgan Stanley. Established in the early 1990s, MSREI has been one of the most active real estate investors for two decades, acquiring over $175 billion of assets in 36 countries. MSREI leverages the expertise, relationships and franchise of Morgan Stanley with dedicated real estate investing professionals located in 15 offices around the world providing acquisition, finance and investment services.