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NEWPORT BEACH, CA-A joint venture of the Koll Co. and the Public Employees Retirement System of Idaho has arranged a $100-million credit line to finance acquisitions in a move to expand the joint venture's 5.3-million-sf portfolio.The venture, called Koll/PER, plans to use the credit line to acquire multi-tenant office and industrial properties in the six states where it currently owns and manages property.
Koll/PER arranged the senior unsecured revolving credit facility from a lending group headed by KeyBank Real Estate Capital, which served as the sole lead arranger and administrative agent, with US Bank as the documentation agent. Other participating lenders were Comerica Bank and Charter One Bank.
Bryan McGowan, managing principal for the Koll Co., calls the new credit line “significant that in light of the tightening credit markets that have reduced the flow of investment capital to many real estate companies.” McGowan says that the factors enabling the venture to secure the credit line included Koll's long history of real estate investment performance and the venture's strategy of acquiring a carefully balanced mix of multi-tenant office and industrial properties in key markets in the Central and Western US.
The six states where Koll/PER owns and manages property are California, Arizona, Nevada, Utah, Colorado and Texas. The line of credit allows Koll/PER to close transactions on an all-cash basis in order to meet rapid transactional time lines, as well as to have greater flexibility in structuring secured debt and making loan assumptions.
“Koll/PER remains bullish on the long-term investment potential of well-positioned office and industrial properties in our key markets, and we will continue to be aggressive in seeking additional properties that meet our investment criteria,” McGowan comments. He adds that the new credit line will enhance Koll/PER's capacity to acquire properties in the target markets.
One of the Koll/PER joint venture's local acquisitions this year was the 130,240-sf Jade Corporate Center multi-tenant property in the Los Angeles suburb of Mission Hills. The JV bought the four-building complex from SCI Properties of Los Angeles for $24.9 million.
In addition to the 5.3 million sf of existing multi-tenant, light industrial and suburban/garden office space, Koll has an additional 1.15 million sf, including two industrial and three office projects. Besides its industrial and office properties, the company is developing Hacienda, an oceanfront community of 239 full-ownership homes in Cabo San Lucas, Mexico.
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