Monday, March 20, 2017

MetroGroup Realty Finance Secures $34.3 Million in Acquisition Financing for Office/Flex Campus in San Diego, CA

Cobham Office Campus, Kearney Mesa Submarket, San Diego, CA

SAN DIEGO, CA – MetroGroup Realty Finance, a private commercial mortgage banking firm based in Newport Beach, California, has successfully secured $34.3 million in acquisition financing on behalf of its client, Klein Investment Family Limited Partnership, to acquire a 132,695 square-foot, four-building office/flex campus in the Kearney Mesa submarket of San Diego, California to perfect an IRS 1031 tax deferred reverse exchange.

The office campus is 100-percent leased to Cobham Advanced Electronic Solutions, a subsidiary of global UK-based Cobham PLC, a leading technology company for the aerospace and defense industries.

 “San Diego is one of the most dynamic markets in the country and is internationally recognized as a leader in aerospace and defense,” says Patrick Ward, Founder of MetroGroup Realty Finance. “The continued growth in these industries, coupled with the region’s record low vacancy is driving tremendous investor demand to the area.”

Patrick Ward
Ward explains that many investors are seeking high-quality stabilized investments in markets like San Diego, which are positioned for long-term growth and are more likely to sustain economic shifts than secondary and tertiary markets.

“We have been working with the Klein’s for over twenty years,” says Ward. “In that time, they have acquired and amassed a strong, balanced portfolio of well tenanted conservatively leveraged net leased industrial properties similar to the Cobham campus.”

MetroGroup Realty Finance provided a bridge loan in the amount of $7 million and a permanent loan in the amount of $27.3 million.

“We took a unique approach to securing financing for this acquisition, and recommended combining a bridge and permanent loan,” explains Ward. “The bridge loan will provide temporary liquidity in anticipation of their selling an existing property.  Proceeds from the sale of their existing property will retire the bridge loan and complete the reverse exchange.”

Ward adds, “Our deep history and innovative approach to sourcing capital allowed us to structure the financing in a way that provided our client the opportunity to acquire an attractive investment that was available now prior to selling one of their assets.”
Klein Investment Family Limited Partnership plans to integrate a series of significant tenant and property capital improvements including replacing roofing and HVAC units, upgrading electrical power, fire systems, and resealing and restriping the parking lots.

Cobham aerial over campus at 404 Chesapeake Drive,
and 5775, 5785 and  5788 Roscoe Court, San Diego, CA
The office/flex complex is located at 9404 Chesapeake Drive, and 5775, 5785 & 5788 Roscoe Court in San Diego, California. 

The permanent financing was for a term of seven years amortized over twenty five years. 

The bridge loan was interest only floating over LIBOR for a term of one year.

Founded in 1983, MetroGroup Realty Finance is a private, Newport Beach-based mortgage banking company that specializes in providing capital advisory and mortgage banking services for properties throughout the United States.  

With deep experience across a variety of property types including office, retail, industrial, multi-family, mixed-use, hotel/lodging, and land, MetroGroup has established long-term relationships with well-respected capital sources, through which the firm delivers lasting results to its clients.  Additional information is available at

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

Elisabeth Manville/Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940


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