TUSTIN, CA—Transwestern has arranged equity and debt financing for the acquisition and repositioning of a 39,762-square-foot flex research and development facility located at 14201 Franklin Ave. The redevelopment is scheduled for completion early in 2016. Transwestern's Robert Murphy, Gary Limjuco and Steven Orchard organized the financing on behalf of Harbor Associates, LLC.

Transwestern sourced equity from a new discretionary fund representing several private investors. The non-recourse debt included a 60% loan-to-value ratio, a 3.5% interest-only rate and a four-year term. The financing structure exploits shifting dynamics to create above-market returns with a stabilized 8.3% yield on cost.

“Harbor saw potential in this asset that others missed because it requires a significant amount of due diligence,” said Murphy. “Harbor focuses on mid-sized, class B or better office repositioning opportunities in Southern California, and this asset presented an attractive opportunity at a favorable price.”