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 “The sponsor wanted to own and occupy this industrial building for its operations, but had already withdrawn two SBA 504 loans in its name and maxed out the SBA financing allowance.”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

Regency Centers Stockholders Approve Proposed Merger With Equity One

Michael Mas
JACKSONVILLE, FL -- (BUSINESS WIRE)-- Regency Centers Corporation (NYSE:REG) (“Regency”) today announced that its stockholders approved its merger with Equity One, Inc. (“Equity One”) (NYSE: EQY) at a special meeting of stockholders held earlier today. Stockholders approved all proposals put forward at the special meeting.

As previously announced, on November 14, 2016, Regency and Equity One entered into a definitive merger agreement (the “Merger Agreement”), pursuant to which Equity One would merge with and into Regency, with Regency continuing as the surviving public company of the merger.

Under the terms of the Merger Agreement, each share of Equity One common stock will be converted into 0.45 of a newly issued share of Regency common stock. On a pro forma basis, following the closing of the transaction, Regency stockholders are expected to own approximately 62 percent of the combined company’s common stock, and former Equity One stockholders are expected to own approximately 38 percent.

Subject to the satisfaction or waiver of certain other customary closing conditions, Regency expects the merger to close on March 1, 2017.

J.P. Morgan Securities LLC is acting as financial advisor, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor, to Regency in connection with the merger.

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

Regency Investor Contacts
Michael Mas, 904-598-7470

Patrick Johnson, 904-598-7422

Hanley Investment Group Arranges Sale of Rare Five-Acre Fee-Simple Ground Lease on South Lake Avenue in Pasadena, CA

Carlos Lopez
PASADENA, CA -- Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced today the firm completed the sale of a rare fee-simple ground lease underlying The Shops on Lake Avenue retail and parking on South Lake Avenue in Pasadena, Calif.

The property is shadow-anchored by Macy’s. The terms of the sale could not be disclosed.

Hanley Investment Group Executive Vice President Carlos Lopez, along with Senior Associate Lee Csenar, represented the seller, Macy’s Inc.  The buyer, a private investor in San Diego, Calif., represented themselves. 

The fee-simple ground lease lies under The Shops on Lake Avenue, which is anchored by Macy’s (not included in the transaction), includes T.J.Maxx, Trader Joe’s, Jos. A Bank, Orvis, Sola Salon, Paul Martin’s, Breakthru Fitness, Corner Bakery, Gymboree, AT&T, Nekter Juice Bar, Pieology Pizzeria, Tokyo Shabu Shabu, Coffee Bean & Tea Leaf, Yogurtland, and Massage Envy. Tenants on South Lake Avenue, such as Williams-Sonoma, Talbots, Pacific Sales, Corner Bakery and Ross Dress for Less, rank among the highest sales volumes for their respective chains.

Lee Csenar
 “This offering represented a once in a lifetime opportunity for an investor to purchase over five acres of land along South Lake Avenue in the heart of Pasadena’s premier shopping district,” said Lopez.

 “A long-term, triple-net ground lease is one of the most secure forms of real estate investment, and the investment community responded accordingly.”

According to Lopez, “Using Hanley Investment Group’s proprietary database, we targeted the private investor community and were able to procure 20 qualified offers and close within 30 days, achieving the seller’s goal of closing by its fiscal year-end.”

The property consists of two parcels totaling 5.32 acres with a total of 131,153 square feet of building at 345 & 401 South Lake Avenue.

 Over 61 years remained on the lease term (which includes two 10-year options and increases every five years); 100 percent of the improvements reverts to the landowner upon expiration of the ground lease. 

Lopez notes that Macy’s has no plans to close the store or sell the Macy’s department store.

The Shops on Lake Avenue, Pasadena, CA
The South Lake Avenue corridor consists of 12 blocks of shopping and dining that include over 600 businesses in addition to two million square feet of Class A office. 

The Shops on Lake Avenue is the main retail project within the district and draws from the region, including nearby cities of Arcadia, Eagle Rock, La CaƱada Flintridge and San Marino.

 The average household income is $102,500 with 37 percent of households averaging $100,000 or more within a three-mile radius. 

Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit

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

Anne Monaghan