Bandon Capital Advisors secures $14 million in financing for 49,000-SF single-tenant office building in El Segundo, CA

REFINANCED: a 49,000 square-foot single-tenant
 creative office building in El Segundo, CA

  

 EL SEGUNDO, CA – Bandon Capital Advisors, a leading commercial mortgage banking and capital advisory firm based in Los Angeles, California, has arranged a $13.99 million loan for the refinance of a 49,000 square-foot single-tenant creative office building in El Segundo, California on behalf of BLT Enterprises. 

Bryan Kenny

This specific transaction underscores the viability of office financing in the current landscape, explains Bryan Kenny, co-founder and president at Bandon Capital Advisors.

Bandon’s partners have completed more than $5 billion in historical transactional activity with Kenny and co-founding Principal William James successfully closing over $600 million in the last 36 months, including several office deals. 

“Despite the challenges office real estate is undergoing and the uncertain economic environment, we were able to secure favorable financing for a quality office property on behalf of our client,” says Kenny.

“The Los Angeles office sector took a hit during the pandemic, but if landlords can deliver quality, amenity-rich office spaces outside of CBDs, they will likely outperform the greater office market.” 

William James

Successful closings like this one illustrate that with experienced sponsorship, a historically good submarket, and moderate leverage, lenders are willing and able to finance office properties.

“Bandon drew upon its established relationships with financial institutions to complete the transaction, sourcing an aggressively priced, long-term fixed-rate loan with interest-only periods followed by a 30-year amortization through one of the firm’s trusted life company lenders,” adds Kenny.

“We’re seeing some financial institutions, especially banks, tighten their credit standards and become more conservative in their underwriting, with many not lending on office assets at all,” notes Kenny.

Robert Solomon,

“The success of this El Segundo deal serves as a prime example that life company lenders, some of whom we’ve worked with for over two decades, are showing interest in moderately leveraged office deals supported by strong, experienced sponsors.”

“The Bandon team’s relationship-driven approach with lenders took this deal over the finish line with financing that aligns with our long-term business goals,” according to Robert Solomon, President and Chief Legal Officer of BLT Enterprises.

“Through Bandon’s financing expertise and experience with life lenders, we were able to rate lock our application for 90 days and secure rate resets every 10 years,” says Solomon.

Situated in Los Angeles County’s South Bay with commuter-friendly proximity to LAX and the 405 and 105 freeways, El Segundo was named 2022’s “Most Business-Friendly City in L.A. County” by the Los Angeles County Economic Development Corporation, with major companies including AT&T, L’Oréal, the Los Angeles Times, Belkin International, Mattel, and DaVita Healthcare all calling the city home to their headquarters.

The refinanced property includes 49,000 square-feet of creative office space with tenant-friendly features such as highly finished offices, kitchens, conference rooms, and a finished basement.

Its tenant, Nexon, a long-time innovator in interactive entertainment software, uses the space as their U.S. headquarters.

With tech companies at the forefront of return-to-office requirements and giants like Twitter and Apple leading the charge, Nexon is well-positioned to thrive in the post-pandemic professional hub that is El Segundo.

Contacts:

 

Sophia Reznicek/Lexi Astfalk  

The Smart Agency

(949) 438-6262

sreznicek@thesmartagency.com