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| Alina Mardesich |
ORANGE COUNTY, CA (April 4, 2018) – George Smith Partners, one of the
nation’s leading commercial real estate capital markets advisors, has
successfully arranged $18,032,000 in non-recourse acquisition/bridge financing
for a portfolio of multi-tenant office properties in Orange County, California
on behalf of the Sponsor, a full-service commercial real estate investment and
operating company based in Orange County, CA.
The financing was arranged by George Smith Partners’ Senior Vice
President Alina Mardesich and Assistant Vice President Joseph P.
Cannizzaro II.
“This portfolio represents a rare value-add opportunity in the
tightening Orange County office market,” says Mardesich. “With office occupancy
rates steadily rising and asset prices reaching new highs, many investors are
looking toward both mid-rise and cost effective low-rise properties. The
opportunity to acquire and improve a portfolio of under-performing assets is
well-timed by the Sponsor.”
The overall portfolio is currently 85-percent occupied, and
located in the cities of Santa Ana, Anaheim and Lake Forest.
“By capitalizing on the strength of the market, the value-add
potential in the portfolio, and the Sponsor’s solid expertise, we were able to
successfully secure competitive financing that met the needs of the borrower
and the lender,” explains Mardesich.
The portfolio includes four newly-acquired office properties along
with a fifth office building already owned by the Sponsor. Loan proceeds will
be used to strategically renovate and reposition the assets and maximize the
value of the portfolio, driving yields for the Sponsor and its investors.
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| Joseph P. Cannizarro II |
George Smith Partners secured the loan at a rate of 3.75% +
one-month LIBOR for a term of three years with two one-year extension options.
The non-recourse loan is interest-only during the initial term and then moves
to an extended 30-year amortization schedule.
The loan was priced at
66-percent of cost and 53-percent of the asset’s stabilized value with
favorable release pricing that allows for not only maximum refinance/exit
opportunities but also returns.
For more information, please contact:
Jordan Kruk /Lexi Astfalk
Brower Group
(949) 955-7940
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