MANHATTAN BEACH, CA-Sonnenblick-Eichner Co. has arranged $27 million of first-mortgage financing on behalf of an affiliate of Continental Development Corp. for 1500 Rosecrans Ave., a 123,000-square-foot office building located within Continental Park business park here. The 10-year, fixed-rate, non-recourse financing was placed with a life-insurance company at a rate of less than 5%. The loan provided two years of interest-only payments.
The property is located on the Rosecrans corridor within the business park, which holds more than 2.5 million square feet of office, warehouse, restaurant and retail space. Tenants at the property include Deloitte, Luther Burbank Savings and 24-Hour Fitness.
“We are currently in a very attractive capital-market environment for commercial real estate financing,” said David Sonnenblick, a principal of Sonnenblick-Eichner Co., in a prepared statement. “Consequently, we were able to generate tremendous interest from both Wall Street investment banks and life-insurance companies. The borrower ultimately decided to move ahead with a life-insurance company, due to their ability to lock rate at application.”
Sonnenblick tells GlobeSt.com that the transaction was actually a refinance of an existing loan, that the owner has owned the property for a while and has no plans to sell it, and that the property is 99% occupied.
Patrick Brown, also a principal at the firm, said in a prepared statement that the borrower’s excellent reputation, hands-on management and track record contributed to the investment-banking firm’s ability to obtain numerous quotes for this financing opportunity.
As GlobeSt.com previously reported, in November 2011 Sonnenblich-Eichner arranged $45 million in financing for Orient-Express Hotels Ltd. to renovate the historic El Encanto, a 92-room hotel originally built in the 1920s. The hotel is expected to reopen later this year 2012. And in August 2011, the firm arranged a $15.8-million, fixed-rate, non-recourse first-mortgage loan for the 124-room Residence Inn by Marriott, an extended-stay hotel at 35 LeCount Place in downtown New Rochelle, NY, on behalf of hotel REIT Chatham Lodging Trust.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
