The loan allows Rreef certain pre-payment options and the ability to release properties from the loan for re-sale while requiring certain loan parameters be maintained, such as the debt service coverage ratio, according to the source. "You could ask three different people involved and they would come up with a different number for what the ratio is," the source says. "It was a very difficult transaction from a lender's perspective because the vacancy in the portfolio and a significant amount of above-market rents."

The source declined to reveal the specific interest rate and float, saying only that it was "extremely competitively priced." Eric Tupler of CBRE Melody, who headed up the loan origination team for both deals, declined to comment on or confirm the details, citing client confidentiality. He did say that the time between the bridge and permanent financing reflected the time necessary to inspect and appraise 119 buildings.

The Silicon Valley portfolio, which is approximately 68% leased, contains a mix of 1980s and 1990s low-rise office and R&D buildings located in the cities of Mountain View (Synopsys campus), Santa Clara (Marriott Business Park), Milpitas (Milpitas Business Park and the Quantum/Maxtor campus), Sunnyvale and San Jose. The portfolio's 132 tenants include ADAC Laboratories/Philips Medical Systems, Maxtor/Seagate Technology, Synopsis and Samsung. Locally headquartered Peery-Arrillaga developed the portfolio on 337 acres over the past 40 years.