BEVERLY HILLS, Calif., Nov. 05, 2019 (GLOBE NEWSWIRE) -- Real estate investment bank Sonnenblick-Eichner Company has arranged $55 million in long-term, non-recourse debt to refinance a 206,000-square-foot, mixed-use office and retail property in El Segundo, CA, a submarket in the South Bay region of Los Angeles .
The 10-year, interest only loan was priced at a fixed interest rate of 3.34% and is secured by four buildings totaling 195,000 square feet of office space and 11,000 square feet of retail space. The properties are located within Continental Development Corporation’s 86-acre Continental Park, a master planned, mixed-use development offering approximately three million square feet of low- and mid-rise Class-A office buildings, retail, restaurant, hotel and entertainment space. Located along the Rosecrans corridor three miles south of Los Angeles International Airport, the properties enjoy access to the entire Greater Los Angeles area via the on-site Los Angeles County Metro Rail Green Line Douglas Street station.
A portion of the loan proceeds will be used to fund costs associated with the lease-up of an 80,000-square-foot office building, whose tenant is expected to vacate early next year. This created an underwriting challenge, especially when seeking long-term debt, according to Sonnenblick-Eichner Co. Principal David Sonnenblick.
“Due to the upcoming vacancy of nearly 40% of the property, it was necessary to structure around this to satisfy lender underwriting criteria,” said Sonnenblick. “By demonstrating the seasoned history of the asset, exceptionally strong sponsorship and the demand for this type of space, as evidenced by the migration of technology companies into the South Bay, we were able to overcome the challenge. The low interest rate associated with the loan also helped to get lenders comfortable that there would be ample coverage for the loan.”
“We received numerous offers for this financing opportunity from a diversified source of capital providers, including commercial banks, CMBS lenders and insurance companies,” added Principal Patrick Brown. “With so much capital chasing so few deals, this is an example of financing sources creatively finding a way to provide financing with an attractive structure and pricing for our client.”
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.
Source: Sonnenblick-Eichner Company
Media Contact: Bruce Beck - bruce@dbrpr.com - (805) 777-7971
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