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| Cobham Office Campus, Kearney Mesa Submarket, San Diego, CA |
SAN DIEGO, CA – MetroGroup
Realty Finance, a private commercial mortgage banking firm based in Newport
Beach, California, has successfully secured $34.3 million in acquisition
financing on behalf of its client, Klein Investment Family Limited Partnership,
to acquire a 132,695 square-foot, four-building office/flex campus in the
Kearney Mesa submarket of San Diego, California to perfect an IRS 1031 tax
deferred reverse exchange.
The office campus is
100-percent leased to Cobham Advanced Electronic Solutions, a subsidiary of
global UK-based Cobham PLC, a leading technology company for the aerospace and
defense industries.
“San Diego is one of the most dynamic markets
in the country and is internationally recognized as a leader in aerospace and
defense,” says Patrick Ward, Founder
of MetroGroup Realty Finance. “The continued growth in these industries,
coupled with the region’s record low vacancy is driving tremendous investor
demand to the area.”
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| Patrick Ward |
Ward explains that many investors
are seeking high-quality stabilized investments in markets like San Diego,
which are positioned for long-term growth and are more likely to sustain
economic shifts than secondary and tertiary markets.
“We have been working with
the Klein’s for over twenty years,” says Ward. “In that time, they have
acquired and amassed a strong, balanced portfolio of well tenanted
conservatively leveraged net leased industrial properties similar to the Cobham
campus.”
MetroGroup Realty Finance
provided a bridge loan in the amount of $7 million and a permanent loan in the
amount of $27.3 million.
“We took a unique approach
to securing financing for this acquisition, and recommended combining a bridge
and permanent loan,” explains Ward. “The bridge loan will provide temporary
liquidity in anticipation of their selling an existing property. Proceeds from the sale of their existing
property will retire the bridge loan and complete the reverse exchange.”
Ward adds, “Our deep
history and innovative approach to sourcing capital allowed us to structure the
financing in a way that provided our client the opportunity to acquire an
attractive investment that was available now prior to selling one of their
assets.”
Klein Investment Family
Limited Partnership plans to integrate a series of significant tenant and
property capital improvements including replacing roofing and HVAC units,
upgrading electrical power, fire systems, and resealing and restriping the
parking lots.
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| Cobham aerial over campus at 404 Chesapeake Drive, and 5775, 5785 and 5788 Roscoe Court, San Diego, CA |
The office/flex complex is
located at 9404 Chesapeake Drive, and 5775, 5785 & 5788 Roscoe Court in San
Diego, California.
The permanent financing was for a term of seven years
amortized over twenty five years.
The bridge loan was interest only floating
over LIBOR for a term of one year.
Founded in 1983,
MetroGroup Realty Finance is a private, Newport Beach-based mortgage banking company
that specializes in providing capital advisory and mortgage banking services
for properties throughout the United States.
With deep experience
across a variety of property types including office, retail, industrial,
multi-family, mixed-use, hotel/lodging, and land, MetroGroup has established
long-term relationships with well-respected capital sources, through which the
firm delivers lasting results to its clients.
Additional information is available at www.metrogroupfinance.com
For a complete copy of the company’s news release,
please contact:
Elisabeth Manville/Lexi
Astfalk
Brower, Miller & Cole
(949) 955-7940
.
