NorthMarq Capital’s San Diego office finalizes $93 million refinance of Chandler, Arizona office park

SAN DIEGO (February 2, 2016) – Eric Flyckt, managing director of NorthMarq Capital’s San Diego office, secured the $93 million refinance for a 523,673 sq. ft. institutional-quality office park located at the intersection of Highways 101 and 202 in Chandler, Arizona. The property, developed and owned by the Douglas Allred Company, is comprised of six, two-story, class “A” office buildings located in a master-planned business park with office, hospitality and restaurant uses. The office park is 100-percent leased to six major national and international tenants including Healthways, Inc., Infineon Technologies, and Infusion Software, Inc. These high-quality buildings were constructed on a spec basis between 2009 and 2014 and offer a 5/1,000 parking ratio. The transaction was structured with a 10-year term with 3-years interest-only, followed by a 30-year amortization schedule. NorthMarq arranged the financing for the borrower through its relationship with Citi Group. NorthMarq has previously secured agency, life company and other CMBS financings for the Borrower. “The loan proceeds were used to pay off the construction loan. One of the buildings is currently vacant; however, it is 100-percent leased to a tenant whose lease commences in January 2017,” said Flyckt. “The lender structured the loan with a holdback for tenant improvements, leasing commissions and rent payments until the tenant's lease commences. Additionally, the loan was structured to allow for the construction of a future parking deck if ever needed. The Douglas Allred Company is a full-service real estate firm which has developed and acquired over 5,800,000 sf of office, industrial, and retail space; over 6,300 apartments, condominiums and single-family homes; and a few hundred acres of business park land. The Douglas Allred Company owns adjacent land for future development.” The property is in close proximity to a number of Chandler’s large manufacturing and office users such as Intel, Wells Fargo, Motorola, Orbital ATK, Charles Schwab & Company, and Microchip Technology.