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| 709 Science Drive, Moorpark, CA |
MOORPARK, CA – Commercial real estate investment banking firm Continental Partners has
successfully secured $19.2 million in owner-user financing for a 256,000
square-foot industrial property in the Ventura County market.
The financing for this
transaction was arranged by Continental Partners Director Zalmi Klyne. The property is located at 709 Science Drive in Moorpark, California.
“In this current lending
environment, there is plenty of liquidity in the market and banks are hungry
for new deals,” says Klyne. “With the potential repeal of Dodd-Frank, which
could serve as a catalyst for financial deregulation, lenders will have greater
flexibility and more opportunities to originate loans, making now a good time
to finance commercial assets.”
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| Zalmi Klyne |
The sponsor, a
manufacturing firm that produces electronic devices, had requested a high
loan-to-cost, long-term fixed rate product to finance the acquisition of an
industrial facility for its new headquarters in Moorpark.
“This transaction was
complex, requiring a unique financing solution to secure the most competitive
terms for the borrower,” explains Klyne. “The sponsor wanted to own and occupy
this industrial building for its operations, but had already withdrawn two SBA
504 loans in its name and maxed out the SBA financing allowance.”
In addition to the SBA
restriction, the asset’s occupancy rate presented another initial challenge,
according to Klyne.
“The sponsor was
relocating from a 50,000 square-foot facility to this 256,000 square-foot
warehouse, meaning it would initially only occupy about 20 percent of the
building. To qualify for many owner-user financing products, the subject
property must be at least 51 percent owner occupied.”
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| Moorpark, CA |
Continental Partners
approached a number of lenders that would originate a competitive loan based on
the borrower’s requirements and ultimately secured a $13.7 million first trust
deed from an international portfolio lender.
The firm also utilized a small
business green program, allowing the sponsor access to an additional $5.5
million in the form of a second trust deed.
“Through this green
program, which provides small businesses with additional proceeds upon the
integration of sustainable upgrades, we were able to secure another $5.5
million in financing,” continues Klyne, who notes that the sponsor plans to
install solar panels at the property to optimize energy efficiency.
“Our ability to secure
$19.2 million in total capitalization speaks to the strength of our lender
relationships and our expertise in utilizing a creative approach to meet our
borrower’s objectives, ensuring an optimal financing solution on behalf of our
clients,” confirms Klyne.
The first trust deed is a
25-year fixed rate, 60 percent loan-to-cost fully amortized loan priced at 4.53
percent. The second trust deed is a $5.5 million, 20-year fully amortized loan
which floats until the green energy upgrades are completed.
For a complete copy of the company’s news release,
please contact:
Lauren Burgos / Katie Kea
Brower, Miller & Cole
(949) 955-7940
