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| REFINANCED: a 49,000 square-foot single-tenant creative office building in El Segundo, CA |
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| Bryan Kenny |
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.”
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.
William James
“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.
“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.”
Robert Solomon,
“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