Wednesday, September 21, 2016

Continental Funding Group Arranges $7 Million in Acquisition Financing for Value-Add Office Building in Downtown San Diego, CA

Downtown Office Building, San Diego, CA

SAN DIEGO, CA – Commercial real estate investment banking firm Continental Funding Group has successfully secured $7 million in bridge financing for a 25,000 square-foot value-add office building located in the financial district of downtown San Diego.

The financing for the acquisition and renovation of this property was arranged by Continental Funding Group Director Eugene Rutenberg.

The three-year interest – only loan was sized to 100 percent of the purchase price, with a loan-to-cost leverage ratio of 75 percent.

Eugene Rutenberg
“Downtown San Diego’s office market is in the midst of a resurgence,” says Rutenberg. “Fueled by tremendous growth in the tech and financial service industries, the central business district is truly the corporate epicenter and financial capital of San Diego, with the largest concentration of high-rise office buildings and jobs in the county.

“Based on the enormous job growth and innovation in this district, demand for quality office space is on the rise, placing upward pressure on lease rates in this submarket.”

According to a recent CoStar report, downtown San Diego’s office market commanded average rental rates of $29.15 per square foot in Q2, with value-add Class B and C product seeing the most positive net absorption, indicating strong tenant demand for office space.

“This property will hit north of $34 per square foot after the sponsor’s business plan is complete, indicating that while Class A office continues to demonstrate steady rent growth, the real opportunity is in value-add product,” explains Rutenberg, who notes that many investors are targeting Class B office assets and repositioning them to drive higher yields.

 For a complete copy of the company’s news release, please contact:

Katie Kea / Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

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