Office - Debt

NorthMarq Capital

NorthMarq Capital’s Los Angeles office completes $33,998,400 bridge loan for office portfolio in Irvine, California

LOS ANGELES (March 27, 2018) – NorthMarq Capital’s Los Angeles regional office arranged a $33,998,400 bridge loan on Corporate Pointe, a five building portfolio located at 1, 3, 5, 7, 9 Corporate Park in Irvine, California. Joe Giordani, vice president, and John Marshall, vice president, arranged the financing on behalf of Kelemen Caamano Investments (KCI).

The property, located within walking distance of the District, consists of 160,499 square feet of office space originally built in 1986. The sponsor plans to improve the asset through upgrades to the building systems, bathrooms, common areas, and exteriors. They will likely add some much-needed amenities to the office park as well, such as a coffee shop and outdoor break areas. Through this refresh of the asset, they will be implementing a new marketing a leasing strategy to retain existing tenants and attract new tenants to the property.

“KCI has a long track record of repositioning office space in Orange County – we aim to add value to regional and local tenants through creative yet affordable design and class leading asset and property management. We believe we’re delivering excellent risk-adjusted returns to our investors as Class A and creative office construction yields continue to compress and underperform market absorption,” said Tibor Kelemen, a founder and principal at KCI.

NorthMarq identified several best-in-class lenders for the project, including life insurance companies, pension funds, debt funds, and banks. Ultimately the borrower chose an institutional non-bank lender with cheap, flexible foreign capital.

The $33,998,000 non-recourse loan at 70 percent of total project cost features future funding for tenant improvements, leasing commissions, and capital expenditures. The five-year loan features full term interest only, flexible prepayment, and the option for individual parcel releases.

“The lender was able to offer tailored terms for a best-in-class sponsor on a light lift that had a unique ownership structure, the need for individual releases, and a three week close. Lender bids were extremely tight and we’re happy NorthMarq was able to offer market clearing pricing that crushed both bank and traditional debt fund pricing,” said NorthMarq’s Giordani.

This transaction is KCI’s tenth office repositioning in Orange County.

NorthMarq Capital, the largest privately held commercial real estate financial intermediary in the U.S., provides debt, equity and commercial loan servicing through over 300 mortgage banking professionals in regional offices coast-to-coast and services a loan portfolio of more than $52 billion. In select markets, the company offers multifamily and manufactured housing investment sales through NorthMarq Multifamily. As a leader in capital solutions through long-term relationships with life companies, CMBS platforms and local, regional and national banks, the company also has a long track record of multifamily loan origination through Freddie Mac, Fannie Mae and FHA/HUD. For more information please visit www.northmarq.com.