Friday, July 21, 2017

MetroGroup Realty Finance Secures Acquisition Financing for Three-Building Industrial Business Park in Orange, CA

Orangewood Business Plaza, Orange, CA

J.D. Blashaw
ORANGE, CA – MetroGroup Realty Finance, a private commercial mortgage banking firm based in Newport Beach, California, has secured $3.9 million in permanent acquisition financing for Orangewood Business Plaza, a three-building industrial business park in Orange, California.

The financing was arranged by MetroGroup’s J.D. Blashaw and Ivan Kustic.

The 49,880 square-foot business park, which is located near Angel Stadium of Anaheim, consists of one office building and two flex/industrial buildings.

“The region surrounding Angel Stadium is undergoing tremendous revitalization, presenting a strong opportunity for long-term value for investors,” according to Blashaw, Vice President at MetroGroup, who notes that a new $450 million development is planned to be delivered next to the Stadium, which is approximately one third of one mile from Orangewood Business Plaza.

The new development includes a hotel, high-rise office buildings, a variety of retail and entertainment, as well as apartments and condominiums.

Ivan Kustic
“This ongoing revitalization will serve as a catalyst for future growth and is one of the reasons the sponsor was initially attracted to the property,” explains Blashaw. “Given the strong opportunity for future value creation, the sponsor needed a loan structure that would provide flexibility and increase initial cash flow.”

MetroGroup was able to secure $3.9 million in financing, which was 46 percent of the purchase price.

“This was a complex transaction that required some innovation,” says Kustic, Loan Officer at MetroGroup. “First, we worked closely with the sponsor and the seller to negotiate an additional $4 million using the sponsor’s existing portfolio of income properties as temporary security in anticipation of selling an existing asset.

“From there, we structured interest only payments for the first 18 months of the loan to provide increased cash flow, which gives the sponsor flexibility to make improvements to the asset and bring current rents up to market value.”

MetroGroup secured the five-year, fixed-rate loan at a rate of 4.6 percent. The buildings are located at 1717 and 1745 West Orangewood and 571 North Poplar Street in Orange, California.

Jim Hawkins and Phil Fridd of Lee & Associates represented both the buyer, Betty L. Davies Family Limited Partnership, and the seller, Orangewood Business Plaza, LLC.

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

Elisabeth Manville
Junior Account Executive
Brower, Miller & Cole
895 Dove Street, Third Floor
Newport Beach, CA 92660
p: (949) 955-7940

No comments: