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.

As a capital markets leader, NorthMarq offers commercial real estate investors access to experts in debt, equity, investment sales, and loan servicing to protect and add value to their assets. For capital sources, we offer partnership and financial acumen that support long- and short-term investment goals. Our culture of integrity and innovation is evident in our 60-year history, annual transaction volume of $13 billion, loan servicing portfolio of more than $57 billion and the multi-year tenure of our more than 500 people.