A Winthrop Realty Trust venture has provided $96.7 million, or 92 percent of par, for a $117.9 million debt against a portfolio of 31 office properties in southern California, Commercial Real Estate Direct reports. The Boston-based real estate investment trust purchased the mezzanine loan from financial services firm Wells Fargo Bank, which had acquired it during its takeover of Wachovia Bank.
The most junior tranche of a $798 million debt package on the portfolio is due to mature in August. Winthrop has allocated $72 million for the deal, giving it a 74 percent holding of the debt. The firm can divest up to a 49 percent interest in its investment. Its partner is tobacco company New Valley, a unit of Vector Group.
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