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| Orangewood Business Plaza, Orange, CA |
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| 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.
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| 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
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