SAN DIEGO – Eric Flyckt, senior vice president/managing director of NorthMarq Capital’s San Diego based regional office and James DuMars, senior vice president/managing director of NorthMarq Capital’s Phoenix based regional office secured acquisition financing of $45.45 million for State Farm Operations Center, a 372,408 sq.ft. office property located in Phoenix, Arizona. The transaction was structured with a 10-year term and 25-year amortization schedule. NorthMarq arranged financing for the borrower, a financially strong and sophisticated opportunity fund, through its relationship with a national bank. The class “A”, institutional-quality, corporate office campus is leased to State Farm for 10 years.
“The borrower’s request for a non-CMBS execution, non-recourse, 10-year term with a 25-year amortization, combined with this being a single-tenant property leased for 10-years, made this a challenging assignment in securing a lender,” said Flyckt. “Many lenders passed as it is a single-tenant property and others were only willing to offer a fully-amortizing structure with a few years of hang-out beyond the lease term. Nevertheless, we secured very attractive terms from a national bank that provided a non-recourse, low fixed interest rate with the term, amortization and proceeds requested by the borrower. The borrower was very pleased with the terms of the financing and the lender performed as promised.”