Monday, February 27, 2017

Continental Partners Secures $19.2 Million in Financing for 256,000-SF Industrial Asset in Ventura County, CA

709 Science Drive, Moorpark, CA

 MOORPARK, CA – Commercial real estate investment banking firm Continental Partners has successfully secured $19.2 million in owner-user financing for a 256,000 square-foot industrial property in the Ventura County market.

The financing for this transaction was arranged by Continental Partners Director Zalmi Klyne.  The property is located at 709 Science Drive in Moorpark, California.

“In this current lending environment, there is plenty of liquidity in the market and banks are hungry for new deals,” says Klyne. “With the potential repeal of Dodd-Frank, which could serve as a catalyst for financial deregulation, lenders will have greater flexibility and more opportunities to originate loans, making now a good time to finance commercial assets.”

Zalmi Klyne

The sponsor, a manufacturing firm that produces electronic devices, had requested a high loan-to-cost, long-term fixed rate product to finance the acquisition of an industrial facility for its new headquarters in Moorpark.

“This transaction was complex, requiring a unique financing solution to secure the most competitive terms for the borrower,” explains Klyne. “The sponsor wanted to own and occupy this industrial building for its operations, but had already withdrawn two SBA 504 loans in its name and maxed out the SBA financing allowance.”

In addition to the SBA restriction, the asset’s occupancy rate presented another initial challenge, according to Klyne.

“The sponsor was relocating from a 50,000 square-foot facility to this 256,000 square-foot warehouse, meaning it would initially only occupy about 20 percent of the building. To qualify for many owner-user financing products, the subject property must be at least 51 percent owner occupied.”

Moorpark, CA
Continental Partners approached a number of lenders that would originate a competitive loan based on the borrower’s requirements and ultimately secured a $13.7 million first trust deed from an international portfolio lender.

 The firm also utilized a small business green program, allowing the sponsor access to an additional $5.5 million in the form of a second trust deed.

“Through this green program, which provides small businesses with additional proceeds upon the integration of sustainable upgrades, we were able to secure another $5.5 million in financing,” continues Klyne, who notes that the sponsor plans to install solar panels at the property to optimize energy efficiency.

“Our ability to secure $19.2 million in total capitalization speaks to the strength of our lender relationships and our expertise in utilizing a creative approach to meet our borrower’s objectives, ensuring an optimal financing solution on behalf of our clients,” confirms Klyne.

The first trust deed is a 25-year fixed rate, 60 percent loan-to-cost fully amortized loan priced at 4.53 percent. The second trust deed is a $5.5 million, 20-year fully amortized loan which floats until the green energy upgrades are completed.

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

Lauren Burgos / Katie Kea
Brower, Miller & Cole
(949) 955-7940

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