SAN DIEGO (July 16, 2014) – Eric Flyckt, managing director/senior vice president of NorthMarq Capital’s San Diego based regional office arranged the $14 million refinance of a 186,827 sq.ft. flex/industrial complex located in Chandler, Arizona. The transaction was structured with a 10-year term with 5-years interest only and a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its relationship with a CMBS lender. This high quality complex is 96% occupied by a solid mix of 15 tenants. The three concrete tilt-up buildings offer 24’ clear height, dock-high and grade-level roll-up doors, parking at 3 spaces per 1,000 sq.ft., an average office build out of 36 percent and excellent access and freeway exposure. The tenants consist of national, regional and local companies.
“The borrower is a San Diego based developer/investor who is very active in the Phoenix area,” said Flyckt. “They acquired this institutional-quality property from a bank during the Great Recession when it was only 10 percent occupied and at a price of $38 psf. NorthMarq presented this loan request to several CMBS lenders as the borrower was seeking maximum proceeds and as many years of IO payments as possible. There was fierce competition among the lenders and the terms among the top three were very similar. The factor which distinguished the selected lender from the others was five years of interest only and slightly lower TI/LC reserves. The borrower was extremely pleased that the lender performed as promised and with the loan terms they secured.”