LOS ANGELES—Continental Development, the largest office landlord in the El Segundo market, has secured a $26 million loan through a life insurance company to refinance two office buildings totaling 184,540 square feet at Continental Park, a 2.7-million-square-foot office park in El Segundo, CA. The borrower sought a life insurance company after having an unhappy experience with its former CMBS lender. The loan carries a 15-year term with a 25-year amortization schedule.
“Continental Development had done this deal as a CMBS loan 10 years prior, and they did not enjoy the servicing aspect of the loan,” Michael T. Elmore, EVP and managing director of NorthMarq Capital, tells GlobeSt.com. “They have never defaulted in the history of the company; they are a huge landlord. During the downturn from 2008 to 2010, they never missed a payment and they performed as they were suppose to, but the harassment they got from the servicing agent made them prefer not to do a CMBS loan again. In addition to that, they were worried about interest rates, so they had us focus on life insurance companies.” Elmore secured the funds on behalf of the borrower, along with his NorthMarq Capital colleague, VP Blake Melstrom.