Is Keystone Property $54M loan a signal?

This is how real estate investing and refinancing is supposed to work.

"In a sign that the CMBS market may be regaining its legs, Keystone Property Group was able to refinance and close on a $53.5 million loan. The loan is the first to be originated and closed under the second generation of commercial mortgage backed securities financing for a multiborrower securitization, according to Keystone.

The loan was made on a property Keystone owns in the Pittsburgh office market called the Keystone Summit Corporate Park. Ackman-Ziff helped Keystone during the loan negotiations.

Keystone Summit consists of five buildings totaling 704,474 square feet. It has everything going for it that would make it appealing for a refinancing in this skittish and capital-constrained environment.

Keystone of Bala Cynwyd, Pa., bought the property in September 2008 when it was less than 75 percent leased. The company put $2 million into exterior and interior improvements, rebranded the property and began targeting tenants. It ended up signing 345,000 square feet of tenants, boosting its net operating income from $1.7 million to $6.2 million. Some tenants include Westinghouse Electric Co., Ericsson Inc., Heinz North America and Seimens.

With the refinancing, Keystone was also able to cash out two-thirds of its equity."