The transaction, which was originated and structured by Bergstrom Capital Advisors of Newport Beach and financed by German investment firm TMW Real Estate Group, provides 60% of the asset's valuation in senior debt. In addition, TMW has contributed $13 million of equity without a preferred return or IRR hurdle. The deal has also resulted in a long-term holding period for the facility, which is why The Currie Partners will still be able to keep an ownership interest on the building.

The six-story facility, which fronts Friar Road, was completed in 2001. The Currie Partners, which originally obtained financing for the project through a commercial bank with a life company takeout commitment, decided to refinance the building after it obtained more than 80% occupancy about a year after completion. More than 50% of the building is currently leased to Washington Mutual and Union Bank.

"This is only the second investment transaction that TMW has completed on the West Coast but we felt strongly about the project's merits, and we were able to convince them that this asset deserved their attention," says Eric Bergstrom, president of Bergstrom Capital Advisors. "The amount of capital provided by TMW, the amount of leverage given the long-term hold and the absence of any preferred return required from The Currie Partners' principals Ron Currie and Larry Woodward, really says a lot about the quality of everyone involved in this transaction," Bergstrom adds.