CORRECTION: An earlier version misidentified one of two Windsor buildings that secure the mortgage.
Connecticut commercial landlord Griffin Land & Nurseries Inc. has again modified its mortgage with Waterbury lender Webster Bank, saving nearly half on interest and extending maturity another five years, a regulatory filing shows.
Griffin negotiated its third modification for the balance of a $9.75 million mortgage issued 10 years ago and originally set to mature next Jan. 1, according to Griffin’s latest 8-K filing with the Securities and Exchange Commission.
With the modification, the interest rate was cut from a fixed 6.08 percent to a floating rate tied to the one-month London Interbank Offered Rate (LIBOR) – the rate leading banks charge to borrow from each other — plus 2.75 percent, the filing said.
However, an interest-rate swap agreement between Griffin and Webster effectively locks the new mortgage rate at 3.86 percent, starting Oct. 1 until the loan matures on Oct. 2, 2017, the filing said.
The mortgage is secured by a pair of multi-story office buildings at 5 and 7 Waterside Crossing in the Griffin Center office park in Windsor, Griffin finance chief Anthony Galici said Thursday.
The loan is between Griffin Center Development IV 10.48: LLC, Griffin Center Development V LLC, parent Griffin Land, and Webster.
Griffin only acted o take advantage of falling interests and did not receive any proceeds from the refinancing, Galeci said. Griffin still owes around $6.7 million on the debt, he said.
Griffin has been selling properties and aggressively stewarding its cash to finance ongoing construction of its first massive warehouse facility in its Lehigh Valley Tradeport project in Pennsylvania, modeled after its huge New England Tradeport straddling the Windsor, East Granby town lines.
