LOS ANGELES-Pheasant West LLC has received $18.9 million to refinance a 200,000-square-foot office building located at 7974 UW Health Court in Middleton, WI, through a loan secured by Los Angeles-based real estate investment banking firm George Smith Partners. The University of Wisconsin Medical Foundation has been the property's sole occupier since it was built in 2007.

The 10-year loan has an 8-year, fixed interest rate of 4.65% with a 20-year amortization. The borrower was able to secure the loan due to the presence of a single, long-term tenant. “A long-standing single-tenant provides steady income for a property owner through the life of a loan. As a result, lenders feel more secure with regard to loan repayment,” says George Smith Partners VP Steve Stein.

Pheasant West LLC is not a traditional single-owner, but is structured as a 74 member LLP. This was an unusual hurdle for George Smith Partners to overcome. “With this ownership structure, no single owner in the LLP holds a substantial interest in the ownership entity,” Stein says. “This structure can be a concern for potential lenders. To remedy this, we drew upon our extensive network of financiers to identify a lender who was familiar with this ownership structure, and had lent to companies with this structure in the past.”