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MORGAN HILL, CA-Venture Corp. is making infrastructure improvements to a 60-acre tract of land within the 300-acre Morgan Hill Business Park. The Mill Valley, CA-based industrial condominium developer says it plans to make street improvements to the property that will result in higher land values.
The business park--one of the largest business parks in the San Francisco area--is located along Highway 101, 15 miles south of San Jose. The improvements are being funded by a $19.5-million loan sourced by Cohen Financial.
Paul Schroeder, the Cohen Financial managing director that originated the loan, says the loan will allow Venture Corp. "to create smaller parcels which will better suit the ever growing small tenant market." Venture Corp. president Robert Eves did not respond to a request for comment.
The loan replaces higher cost debt, Schroeder says. In addition to funding the street improvements, Schroeder says it allows Venture Corp. "to improve cash flow."
The financing consists of a three-year, floating rate, full-recourse loan, based only on land value, and secured by Cohen Financial at 70% loan to value with pricing over LIBOR. The lenders are The Marshall Group and First Bank.
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